Fairmint Calls on the SEC to Implement Blockchain Framework for Private Equity Markets

In an effort to modernize private equity markets, Fairmint, a protocol for on-chain securities, has called on the US Securities and Trading network Commission (SEC) to embrace regulatory frameworks based on distributed record technology.

On June 16, 2025, Fairmint submitted a thorough seven-point proposal to the SEC’s crypto task force, showcasing various ways in which blockchain technology could revamp and supplant traditional administrative frameworks within the $6 trillion US private securities sector.

Fairmint, a registered transfer agent associated with the SEC, creates infrastructure for compliant on-chain securities. The organization presented its recommendations to SEC Chair Paul Atkins and Commissioner Hester Pierce, pinpointing significant operational challenges faced in private markets.

Additionally, it offered practical solutions that it believes align with existing regulatory frameworks. In its submission, the securities platform contends that private markets are predominantly reliant on antiquated infrastructure, which hinders operational efficiency.

Private markets operate on mismatched spreadsheets and Web2 vendor databases,
costly enclosed environments that seldom align, rarely integrate.

Equity cannot move freely or be genuinely owned; transfers are delayed for extended periods, processed manually, records conflict, regulation gaps expand.

— Fairmint (@FairmintCo) June 16, 2025

To add to the complexity, these outdated systems rely on costly spreadsheet-driven setups that lack inherent settlement functionalities, diminishing transparency.

Fairmint anticipates that its seven-point policy proposal will harmonize infrastructure among transfer agents and facilitate real-time regulatory oversight, enhancing trader accessibility.

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Fairmint Advocates for Protocol-Level Interoperability to Harmonize Private Market Infrastructure

The strategy put forth by Fairmint advocates for the establishment of protocol-level interoperability to unify private market infrastructure. With this interoperability in place, the agency asserts that existing fragmented systems can be addressed, bringing essential relief to transfer agents.

Furthermore, to enhance regulatory oversight, Fairmint has suggested deploying blockchain-based observer nodes. If adopted, this would enable the SEC to supervise transactions in real-time while ensuring user privacy.

To facilitate direct ownership of private securities accompanied by built-in regulation features, the securities network proposed self-custody options for investors.

Additionally, Fairmint has championed a knowledge-based accreditation model challenging traditional crypto holder qualification criteria, aiming to standardize competency evaluations and replace outdated wealth threshold models.

To stimulate crypto market activity, it has recommended a non-custodial broker-dealer framework for smart contract-based mediation, along with the introduction of a Decentralised Finance (DeFi) sandbox for safely conducting experiments in a controlled setting.

Released on May 30, our 7-point framework takes on that fragmentation directly:
• protocol-level standardization
• real-time SEC visibility via Observer Nodes
• direct on-chain settlement with built-in crypto law

— Fairmint (@FairmintCo) June 16, 2025

Ultimately, Fairmint has recommended that the SEC establish a direct settlement system in place of conventional clearing methods. This direct settlement framework will utilize smart contracts to streamline processes and eliminate unnecessary mediation.

Fairmint asserts that the implementation of these recommendations will alleviate administrative burdens associated with on-chain processes, encouraging innovation.

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