Nasdaq is urging the U.S. Securities and Exchange Commission (SEC) to apply the same rules to digital assets that effectively function as traditional stocks.
Nasdaq Calls for Clearer Crypto Regulations
In a letter dated April 25, Nasdaq pressed the SEC to create a more defined taxonomy for cryptocurrencies. The exchange argued that some digital assets should be classified as “financial securities” and treated accordingly, regardless of whether they are paper shares, digital shares, or tokens.
“An instrument’s fundamental nature doesn’t change based on its form; it should be regulated the same way,” the letter stated. Nasdaq also proposed the creation of a new category called “digital asset investment contracts,” which would face lighter regulation but still fall under SEC oversight.
A Shift in SEC Crypto Policy
The SEC’s approach to cryptocurrencies has undergone major changes since President Donald Trump returned to office. Under former Chair Gary Gensler, the SEC asserted that nearly all cryptocurrencies, except Bitcoin, were securities, leading to over 100 lawsuits against crypto firms.
However, the agency has shifted gears under new Chair Paul Atkins, who took office on April 21 after a lengthy confirmation process. In February, the SEC clarified that memecoins, when labeled as purely speculative with no intrinsic value, do not qualify as securities. Furthermore, in April, the SEC ruled that stablecoins pegged to the U.S. dollar are not securities if they are promoted strictly as payment methods.
Building the Future of Digital Finance
Nasdaq emphasized in its letter that the current financial infrastructure could easily adapt to digital assets with the right taxonomy and updated regulations. It cited ongoing efforts by the Depository Trust & Clearing Corporation (DTCC), a key U.S. securities clearinghouse under SEC oversight, to integrate blockchain technology into regulated markets.
In March, the DTCC announced its support for Ethereum’s ERC-3643 standard, designed for permissioned securities tokens, marking another step toward merging traditional finance with blockchain innovations.
