The Fairmint platform called on the US Securities and Exchange Commission (SEC) to help create a regulatory framework that will regulate the use of blockchain in the direct investment market.

In contact with the SEC, Fairmint representatives said that blockchain technology can replace obsolete administrative systems in the American market of private securities, the volume of which is estimated at $ 6 trillion. Fairmint insists: most of the market still works with expensive systems based on electric tables, not having the opportunity to conduct its own calculations. This reduces transparency of transactions – while blockchain will allow regulatory departments to monitor transactions in real time, while maintaining user confidentiality.

It is worth improving the market infrastructure so that agents transferring securities can interact with each other at the level of protocols – this will eliminate the fragmentation of the market, explained in Fairmint.

Fairmint recommended replacing traditional clearing systems with direct calculations based on smart contracts-to accelerate transactions and reduce dependence on intermediaries. SEC could create a controlled regulatory sandbox for experiments with decentralized finances (Defi), the platform appeal.

Earlier, the Chairman of the SEC Esther Peirce invited Congress to carry out cryptocurrency reforms, namely: to divide cryptoactives into several categories, and then distinguish between financial regulators for cryptocurrency supervision.