Nasdaq Demands Regulatory Clarity from SEC on Digital Assets

Highlights:

• In a recent comment letter, Nasdaq advocated for better crypto regulatory guidelines from the US SEC.
• The American Stock Exchange recommended proper taxonomy as one of the ways of achieving better rules.
• Nasdaq highlighted seven areas of concern in its comment letter to the US regulatory watchdog.

American stock exchange Nasdaq has published a comment letter urging the US Securities and Exchange Commission (SEC) to clarify rules guiding digital assets. In the comment letter, the stock exchange highlighted key areas of concern in crypto regulations and ways to address them.

Areas of Consideration for Crypto Regulatory Rules

First, Nasdaq said that the SEC and other regulatory bodies, including the Commodity Futures Trading Commission (CFTC), must prioritize protecting retail and institutional investors. Second, the stock exchange urged the regulatory commissions to be receptive to innovation and efficiency.

According to Nasdaq, the US regulatory agencies have delayed establishing clear crypto regulatory guidelines due to fear and uncertainty. The stock exchange highlighted the rapidly growing US digital assets industry, underscoring the urgent need for clear regulations.

Third, Nasdaq suggested proper digital assets taxonomy as another option that could help clarify crypto regulations. The stock exchange noted that previous attempts at classification negatively impacted investors and regulators. It added that a successful virtual assets taxonomy should eliminate challenges arising from the industry’s evolution.

In addition, the stock exchange argued that the underlying nature of some assets is the same. Hence, they should share similar treatment in electronic or tokenized share formats. Another concern was assigning more flexibility to assets that pose lower risks to investors.

Nasdaq also discussed the need for a level playing field for similarly situated assets. Nasdaq said different regulations could distort the market, causing investors to suffer significant harm. Finally, the stock exchange noted that regulatory agencies must make rules, holding digital asset platforms accountable for systemic risks.

NASDAQ TO SEC: WE NEED CLEAR RULES FOR DIGITAL ASSETS

Nasdaq is calling on the SEC to establish clear regulations for digital assets, arguing that proper oversight could help integrate crypto into traditional markets.

The message adds to mounting pressure on U.S. regulators to… https://t.co/MOhOWJAg99 pic.twitter.com/1KzKS8e2oJ

— Crypto Town Hall (@Crypto_TownHall) April 25, 2025

Recommendations on How to Achieve the Regulatory Aims

Nasdaq recommended establishing a four-part taxonomy like Commissioner Peirce’s proposal. The first category, financial securities, would cover tokenized versions of all instruments that the 1933 Securities Act defines as “securities,” excluding investment contracts.

The second classification, digital asset investment contracts, would include tokenized investment contracts that remain securities under the commission’s jurisdiction. Another category was digital asset commodities. Nasdaq said it would contain products that meet the definition in the Commodities Exchange Act.

The stock exchange named the last category “other digital assets.” This group would contain assets that are neither securities nor commodities. Other recommendations include enforcing strict registration requirements for all financial securities.

Nasdaq added:

“Clearly state that the tokenization of Financial Securities does not change the applicability of the federal securities laws that govern how such Financial Securities may be offered or traded, either publicly or through private placements.”

This is crazy bullish for crypto. The NASDAQ filed a letter to the SEC requesting to label digital assets in these 4 categories: https://t.co/O9maxGGT3D pic.twitter.com/Oovq6m4I1k

— Rick McCracken DIGI 🇺🇸 (@RichardMcCrackn) April 26, 2025

SEC’s New Chairman Speaks on Crypto Regulatory Clarity

The new permanent chairman of the US SEC, Paul Atkins recently criticized the previous administration for fostering uncertainty in the crypto landscape. He assured Americans of his commitment to work with appropriate bodies to restore clarity in the crypto industry.

Atkins will continue from where Mark Uyeda stopped during his short stint as the regulatory body’s interim chairman. Uyeda’s short tenure saw the termination of several lawsuits against crypto companies like Ripple, Uniswap Labs, Gemini, Kraken, Cumberland DRW, Dragonchain, etc.