Nasdaq Informs US SEC: Precise Cryptocurrency Labels will be Key to Future Regulation

The Nasdaq exchange has written to the US SEC's cryptocurrency task force, advising regulators to carefully categorize digital assets and clearly identify regulatory "referees." The document, signed by Chief Regulatory Officer John Zecca, proposes four classifications: the first is financial securities tokens (such as tokens tied to stocks, bonds, and ETFs, which should be treated equivalently to the underlying assets) under SEC regulation; the second is digital asset investment contracts (tokenized contracts that meet the revised Howey test) subject to securities rules; the third is digital asset commodities (meeting the US definition of commodities) under CFTC jurisdiction; and the fourth is other digital assets (which do not fit into the previous three categories and are not mandatorily subject to securities or commodities rules). The SEC and CFTC will collaborate to clarify regulatory boundaries, and new cryptocurrency laws could serve as guiding principles. Nasdaq also recommends establishing cross-trading qualifications for platforms handling multiple asset types and emphasizes its credibility in the digital asset field, calling for enhanced security constraints for companies comprehensively handling investor activities, aligning with industry practices.