As the United States Securities and Exchange Commission (SEC) takes another look at how digital finance fits into traditional systems, blockchain-native firm Fairmint has jumped in with a detailed reform plan aimed squarely at the private markets sector. The company has presented a comprehensive framework suggesting blockchain as the key to unlocking transparency and efficiency in a space still hampered by outdated processes.
The proposal, submitted to SEC Chairman Paul Atkins and Commissioner Hester Peirce, focuses on bringing structure to a fragmented industry. Fairmint wants to shift private securities from their current disjointed systems into a unified digital environment. The firm’s suggested changes cover infrastructure, investor eligibility, real-time oversight, and compliance, all underpinned by blockchain technology.
Image 1 (Source: Pandatechie)
A Push to Clean House in Private Markets
In its submission, Fairmint described the private market’s current state as being held together by sticky tape and spreadsheets. According to the firm, while public markets operate under regulated structures such as those provided by the Depository Trust & Clearing Corporation (DTCC), private companies often rely on manual, unregulated tools that lack basic settlement capabilities.
Joris Delanoue, Chief Executive Officer of Fairmint, flagged this contrast as a sticking point. He argued that private firms are managing billion-dollar shareholder registers using Excel, whereas public firms enjoy seamless, regulated support systems. He believes this creates bottlenecks, opens up gaps in compliance, and slows the ability of private firms to raise capital.
Fairmint has already been walking the walk. As an SEC-registered transfer agent, it’s processed more than $1 billion worth of equity using blockchain-based tools. Now, the firm is calling for industry-wide changes that would allow others to follow suit under regulatory clarity.
Laying Down a Seven-Point Roadmap
The framework is built around seven core ideas, each intended to modernise a specific area of private securities administration. First is infrastructure. Fairmint recommends building protocol-level standards so that different systems can operate side by side without tripping over each other.
The second key point is regulatory oversight. The company suggests that blockchain could give the SEC real-time observability without compromising sensitive data. By installing observer nodes, regulators could keep tabs on activity as it happens—rather than relying on delayed, after-the-fact reporting.
Investor self-custody comes in next. This change would allow investors to directly hold their shares while still keeping the legal and regulatory boxes ticked. It’s a shift away from third-party custodians and towards more investor control.
Another central proposal involves changing how investors are qualified. Right now, eligibility often depends on wealth. Fairmint wants that changed to a knowledge-based standard. If a person understands the risks and mechanics of private investment, they should be able to participate—regardless of income.
Also on the table is a legal framework for non-custodial broker-dealers. These would be operators that enable trades using smart contracts without holding any assets themselves. Fairmint believes this would foster innovation while staying on the right side of securities law.
To help new ideas grow without breaking things, the company recommends creating a sandbox for decentralised finance (DeFi). This would let projects test out their systems under regulator supervision before going live in the open market.
Lastly, Fairmint suggests overhauling how trades are settled. Right now, private securities depend heavily on intermediaries. The firm wants to introduce direct, blockchain-based settlement systems to cut down on delays and administrative clutter.
Image 2: (Source: Unsplash)
No Smoke and Mirrors, Just Real-World Application
Fairmint’s recommendations are not pie in the sky. They’re drawn directly from its existing systems, which already handle real capital in compliance with U.S. law. Underpinning these operations is the Open Cap Table Protocol, an open-source initiative designed to make equity ownership more accessible and traceable on-chain.
Delanoue has made it clear that the firm is not chasing competitive advantage. Instead, he sees shared infrastructure as the rising tide that lifts all boats. A more robust and unified system, he argues, benefits regulators, companies, and investors alike.
His comments also reflect growing alignment with U.S. regulators. Atkins has expressed interest in modernising financial infrastructure, and Peirce has long pushed for regulatory clarity that supports innovation. Fairmint’s plan fits hand-in-glove with those goals.
As Delanoue put it, the SEC’s Crypto Task Force provides exactly the type of forum needed to stitch together the traditional and digital sides of finance. The firm’s submission aims to give regulators a real-world example of how blockchain can enhance, not bypass, their mission.
Tokenisation Gaining Ground Beyond the U.S.
Fairmint’s move comes at a time when interest in tokenised finance is hitting its stride globally. The SEC has recently hosted two key industry roundtables exploring tokenisation and decentralised finance. Industry input suggests the tide is turning toward acceptance.
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Robinhood, the U.S.-based trading platform, is already getting its ducks in a row. The company is planning to let European investors trade tokenised shares of U.S. companies via blockchain. Robinhood’s CEO, Vladimir Tenev, indicated that tokenising private equity is next on their agenda, underscoring how fast the space is evolving.
Fairmint’s proposal, rooted in real operations and structured around achievable reforms, could play a key role in that shift. By offering regulators a clear, workable framework grounded in compliance and transparency, the company is throwing its hat in the ring to help shape the future of private capital markets.
