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.

Nasdaq is calling on the Securities and Exchange Commission (SEC) to treat certain cryptos like traditional financial securities, according to a letter dated April 25, in which the exchange also urged the agency to classify certain cryptocurrencies as “stocks.”

Highlighting the need for clearer regulatory standards for digital assets, Nasdaq argued that cryptos exhibiting 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, and it should be subject to the same or similar set of regulatory requirements,” 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.

This request for clarification comes amid significant changes in the SEC’s stance on crypto regulation.

Following a broad interpretation of securities law by Chair Gary Gensler, the SEC had classified most cryptocurrencies other than Bitcoin as securities, leading to a series of lawsuits against crypto companies for allegedly violating securities laws.

However, with the appointment of Paul Atkins as chairman, the SEC has 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.

Therefore, Nasdaq’s call for clearer crypto regulation could be seen as an attempt to streamline the integration of digital assets into the traditional financial system.

Such regulation could provide more certainty to investors and facilitate innovation while ensuring market security.