Fairmint urges SEC to adopt a blockchain framework for the private equity market

The decentralized finance (DeFi) project Fairmint submitted a proposal to the Securities and Exchange Commission (SEC), calling for the adoption of a blockchain framework for the private equity market.

According to Cointelegraph, a virtual asset (cryptocurrency) media outlet, on the 16th (local time), Fairmint submitted a proposal to the SEC’s virtual asset task force (TF), recommending the introduction of a 7-stage blockchain framework to innovate the U.S. private equity ecosystem.

Through its proposal, Fairmint argued that the private equity market needs ▲ infrastructure standardization, ▲ real-time regulatory monitoring systems, ▲ self-management rights for investors, ▲ knowledge-based investor verification, ▲ a regulated DeFi sandbox, ▲ a smart contract-based broker-dealer framework, and ▲ direct payment protocols via blockchain.

Joyce Delano, CEO of Fairmint, stated, “Private companies manage billions of dollars of Excel market capitalization, while public companies are regulating the infrastructure,” and emphasized, “This results in unnecessary friction, compliance gaps, and restrictions on U.S. capital formation.”