Nasdaq urges SEC to treat certain digital assets as 'stocks by any other name'
Nasdaq has requested the SEC to apply the same regulatory standards to digital assets as to securities, suggesting that some cryptocurrencies should be classified as “financial securities.” Nasdaq emphasized that the underlying nature of an instrument remains unchanged regardless of its form, advocating for consistent regulation. The exchange proposed a category for cryptocurrencies as “digital asset investment contracts,” which would be subject to lighter regulation but still under SEC oversight. The SEC's stance on cryptocurrency has shifted significantly, with former Chair Gary Gensler asserting that most cryptocurrencies are investment contracts, leading to numerous lawsuits against crypto firms. Recently, under new Chair Paul Atkins, the SEC narrowed its jurisdiction, stating that memecoins and certain stablecoins do not qualify as securities if marketed for specific purposes. Nasdaq believes that integrating digital assets into traditional finance is feasible with proper taxonomy and rule adjustments, and the DTCC is working on incorporating blockchain technology into regulated markets.
