Fairmint Proposes Onchain Equity Framework to SEC

Fairmint introduces an onchain equity proposal to SEC, aiming for modernization in private markets.

Fairmint, led by CEO Joris Delanoue, has submitted a comprehensive framework to the SEC’s Crypto Task Force. This proposal is poised to advance tokenized securities, aiming to bring enhanced onchain equity infrastructure to the private markets.

Fairmint Pitches Blockchain Settlement to SEC

Fairmint, led by CEO Joris Delanoue, has submitted a comprehensive framework to the SEC’s Crypto Task Force. This proposal is poised to advance tokenized securities, aiming to bring enhanced onchain equity infrastructure to the private markets.

Delanoue and Fairmint are focused on creating a blockchain-based settlement and compliance process. The motivation is to extend the current financial market scope by adding real-time observable standards for private markets.

Experts Anticipate Shift in Private Equity Management

Digital asset markets could witness increased transparency and reduced compliance gaps. The framework could create new financial opportunities by making private securities more accessible and manage today’s billion-dollar cap tables more efficiently.

Analysts predict that if implemented, Fairmint’s proposal could significantly transform private equity management. The benefits include potentially lower costs and friction. However, the impact on market infrastructure remains under evaluation pending adoption.

Tokenization Trends and Regulatory Challenges

The trend of tokenizing assets has been apparent with stock exchanges like Kraken. Blockchain rails are being used for instant settlement of tokenized equities, though U.S. regulations remain rigorous.

Expert opinion from Kanalcoin suggests that while technology promises benefits, regulatory uncertainties persist. Observing the tokenization of real-world assets like bonds and real estate, similar challenges could arise, influencing the adoption of Fairmint’s proposal.

“Private companies are managing billion-dollar cap tables in Excel while public companies have regulated infrastructure. This creates unnecessary friction, compliance gaps and limits American capital formation. We’ve spent years building the solution to blur the lines between private and public by going onchain. Now we’re sharing the regulatory roadmap to scale it industry-wide.” – Fairmint Press Release