Nasdaq Calls On The SEC To Treat Cryptocurrencies As Financial Securities

Nasdaq calls on the Securities and Exchange Commission (SEC) to treat certain cryptos like traditional financial securities. In a letter dated April 25, Nasdaq urged the SEC to classify certain cryptocurrencies as “stocks“, highlighting the need for clearer regulatory standards for digital assets.

SEC and Nasdaq: a new era for crypto regulation?

Nasdaq insists that cryptos with characteristics similar to stocks should be regulated in the same way, regardless of whether they take the form of paper securities, digital or tokenized ones.

 Whether in the form of a paper share, a digital stock, or a token, the underlying nature of an instrument remains the same.

The exchange stated, advocating for consistent regulation across different asset forms. Nasdaq also proposed classifying certain crypto assets as “digital asset investment contracts“, subject to lighter regulation while remaining under SEC supervision.

A breath of hope in the market

This request for clarification comes amid significant changes in the SEC’s stance on crypto regulation. Under Gary Gensler’s leadership, the SEC had classified most cryptocurrencies, except Bitcoin, as securities, which led to a series of lawsuits against crypto companies for alleged securities law violations.

However, with Paul Atkins’ appointment as chairman, the SEC adopted a narrower position, excluding memecoins and stablecoins used solely for payments. Additionally, the Depository Trust & Clearing Corporation (DTCC), a key clearinghouse for US securities, is working to integrate blockchain into regulated markets, with Ethereum’s ERC-3643 standard for tokenized securities gaining popularity.

Nasdaq’s call for clearer crypto regulation thus reflects a growing need for integration of digital assets into the traditional financial system. Such regulation could provide more certainty to investors and facilitate innovation while ensuring market security.