In a bid to modernise the private equity markets, Fairmint, an on-chain securities platform, has urged the US Securities and Exchange Commission (SEC) to adopt blockchain framework-based regulatory protocols.
On 16 June 2025, Fairmint submitted a detailed seven-point proposal to the SEC’s crypto task force, highlighting the numerous ways in which technology based on a blockchain framework could modernise and replace legacy administrative frameworks in the $6 trillion US private securities market.
Fairmint, a registered transfer agent affiliated with the SEC, develops infrastructure for compliant on-chain securities. The agency submitted its suggestions to the SEC Chair Paul Atkins and Commissioner Hester Pierce, identifying key operational hurdles in private markets.
It also presented actionable solutions that it believes fall under the scope of the existing regulatory frameworks. In its proposal, the securities platform has argued that private markets still largely depend on outdated infrastructure, hampering operational efficiency.
Private markets run on incompatible spreadsheets and Web2 vendor databases,
expensive walled gardens that never agree, rarely connect.Equity can’t move or be truly owned; transfers stall for months, are handled manually, records clash, compliance gaps widen.
— Fairmint (@FairmintCo) June 16, 2025
To complicate matters further, these outdated infrastructures utilise expensive spreadsheet-based systems that don’t have native settlement capabilities, limiting transparency.
Fairmint expects its seven-point policy proposal to unify infrastructure among transfer agents and enable real-time oversight for regulators, which will broaden investor accessibility.
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Fairmint Proposes Implementing Protocol-Level Interoperability To Unify Private Market Infrastructure
The outlined plan by Fairmint proposes to implement protocol-level interoperability in order to unify private market infrastructure. With its protocol-level interoperability in place, the agency believes that the current fragmented systems will be dealt with, providing much-needed relief to transfer agents.
Moreover, to augment regulatory oversight, Fairmint has proposed the implementation of blockchain-based observer nodes. If implemented, it will allow the SEC to monitor transactions in real time while maintaining user privacy.
To allow direct ownership of private securities with inbuilt compliance measures, the securities platform suggested self-custody by investors.
Additionally, Fairmint has pushed for a knowledge-based accreditation model as a challenge to traditional investor qualification standards. This aims to make competency assessments a standard, replacing the outdated models of wealth threshold.
To foster market activity, it has advocated for a non-custodial broker-dealer structure for smart contract-based intermediation. Also, a Decentralised Finance (DeFi) sandbox has been suggested to safely execute experiments in a controlled environment.
Submitted on May 30, our 7-point framework attacks that fragmentation head-on:
• protocol-level standardization 🔥
• real-time SEC visibility via Observer Nodes 🔍
• direct on-chain settlement with built-in compliance ⚡️— Fairmint (@FairmintCo) June 16, 2025
Finally, Fairmint has recommended that the SEC implement a direct settlement architecture instead of the traditional clearing systems. The direct settlement architecture will be powered by smart contracts to streamline settlements and cut out unnecessary intermediaries.
According to Fairmint, the implementation of these suggestions will reduce administrative burdens with on-chain processes, fostering innovation.
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Key Takeaways
- Fairmint, an on-chain securities platform, has urged the SEC to adopt blockchain framework-based regulatory protocols for private equity markets
- Private equity markets rely on outdated infrastructures that don’t have native settlement capabilities, further limiting transparency.
- Fairmint has outlined its plan to implement protocol-level interoperability to unify private market infrastructure
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