Nasdaq is calling on U.S. regulators to establish clearer rules for digital assets by defining them into four distinct categories, a move the exchange operator said would help determine the proper oversight responsibilities between federal agencies.
In a 23-page letter sent to the Securities and Exchange Commission’s (SEC) crypto task force, Nasdaq outlined a framework that divides digital assets into financial securities, digital asset investment contracts, digital asset commodities, and other digital assets.
The proposal seeks to clarify regulatory jurisdiction and facilitate the integration of digital assets into the broader financial system.
Nasdaq said tokens tied to assets that already qualify as securities, such as stocks, bonds, and exchange-traded funds, should be regulated in the same way as their underlying instruments.
Investment contracts that meet the criteria under a refined interpretation of the Supreme Court’s Howey test should also fall under SEC supervision.
Digital assets deemed commodities would fall under the purview of the Commodity Futures Trading Commission (CFTC), while a fourth category, covering assets that do not fit into the other groups, would not be subject to securities or commodities rules.
The letter emphasized that determining the jurisdictional boundaries between the SEC and CFTC should ultimately be guided by potential future legislation from Congress.
Nasdaq also suggested the creation of a crossover designation for platforms handling multiple types of digital assets, including securities, commodities, and other tokens.
The exchange operator highlighted its global experience in trading, clearing, and market surveillance for digital asset platforms, underscoring its capability to support regulatory efforts.
It also recommended that regulators consider additional safeguards for companies that vertically integrate trading, clearing, and custody services — a common practice in the crypto sector.
Nasdaq’s proposal follows recent shifts in the SEC’s regulatory stance under new leadership, signaling an evolving approach to cryptocurrency oversight amid calls for greater market clarity.
