Nasdaq Presses SEC for Four-Tier Crypto Rulebook, Demands Regulatory Clarity

The American stock exchange, Nasdaq, has urged the U.S. Securities and Exchange Commission (SEC) to develop a clear and consistent classification framework for crypto assets, emphasizing the need for regulatory clarity as digital assets continue to develop.

In a 23-page letter addressed to the SEC’s Cryptocurrency Task Force, Nasdaq called for a structured taxonomy to help define which agency should regulate specific types of crypto assets.

The exchange operator proposed categorizing digital assets into four distinct categories: financial securities, digital asset investment contracts, digital asset commodities, and other digital assets that fall outside existing definitions.

Nasdaq sent a detailed letter to the SEC outlining a plan to split digital assets into four clear groups: securities, digital asset investment contracts, commodities, and everything else.

I think having a clear guide now could really help shape smarter rules down the line.

Nasdaq asserted that this framework would help delineate regulatory authority between the SEC and the Commodity Futures Trading Commission (CFTC), depending on the nature of the asset.

“While a stock by any other word would still be a stock, the existing market ecosystem can readily absorb digital assets by establishing the proper taxonomy and calibrating certain rules to reflect what is truly new and novel about digital assets,” the letter stated.

According to Nasdaq, digital assets that qualify as financial securities, such as tokens tied to stocks, bonds, or ETFs, should be treated the same as their underlying assets and regulated by the SEC.

Investment contracts that meet the criteria under a clarified version of the Howey test would also fall under the SEC’s jurisdiction.

However, commodities would be regulated by the CFTC, while digital assets that don’t fit these classifications would be exempt from securities or commodities rules.

The letter, signed by John Zecca, Nasdaq’s Chief Regulatory Officer, emphasized the importance of respecting the existing financial system while adapting it to accommodate digital assets. “Digital assets that constitute financial securities must trade as they do today,” Zecca wrote.

Nasdaq also suggested that regulators create a new crossover designation for trading platforms that handle multiple types of digital assets under a single roof.

The company noted that its global infrastructure already supports digital asset platforms across six continents, including trading, surveillance, and clearing services.

Additionally, Nasdaq advised that regulators consider enhanced oversight or constraints for vertically integrated crypto firms that manage all aspects of investor activity, from issuance to trading and custody.

The letter was submitted in response to SEC Commissioner Hester Peirce’s call for industry input on future crypto regulation.

As Nasdaq calls for well-defined crypto asset classifications, momentum is building in Washington for a broader regulatory reset.

SEC Commissioner Mark Uyeda recently outlined a shift from the agency’s prior enforcement-first approach, intending to take a more open and collaborative regulatory tone under the Trump administration.

In a CNBC interview during the World Bank and IMF Spring Meetings, Uyeda revealed that the SEC has launched a new crypto task force focused on crafting clear, cost-effective rules for digital assets, an effort he says seeks to reverse the chilling effect past enforcement actions have had on innovation.

SEC Commissioner Mark Uyeda joins us from the World Bank in D.C. to discuss the @SECGov's shifting stance on regulation, crypto and much more as the new Chair is sworn in.https://t.co/KFTsdeI6ZE

Uyeda acknowledged that years of aggressive legal actions pushed many crypto firms offshore.

The agency is now engaging with the White House and Treasury through joint task forces on crypto and AI, and hosting public roundtables to gather industry feedback.

The first session addressed the core question of how to apply the Howey Test to digital assets, a decades-old standard still fueling legal uncertainty.

Meanwhile, newly sworn-in SEC Chairman Paul Atkins affirmed his intent to make digital asset regulation a top priority, pledging a “principled” approach to ensure the U.S. remains a global hub for crypto innovation.

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