Fairmint has proposed a framework to the SEC’s Crypto Task Force aimed at modernizing private equity through blockchain technology. The seven-step proposal seeks to address the outdated infrastructure by establishing standardized systems for interoperability among transfer agents and implementing real-time regulatory oversight using blockchain. Additionally, it advocates for updating investor accreditation standards to focus on knowledge rather than just income and net worth, while suggesting the creation of a regulated decentralized finance (DeFi) sandbox. Fairmint CEO Joris Delanoue emphasized the inefficiencies in private companies managing substantial capital tables manually through outdated spreadsheets, noting that public companies benefit from more sophisticated infrastructure. With the global private equity market anticipated to grow to $6 trillion by 2024, the proposal highlights the need for improved regulatory frameworks to support this sector. The SEC has been gathering insights on tokenization and DeFi, reflecting a broader interest in adapting to digital asset trends across traditional markets.

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