Nasdaq is urging federal regulators to subject certain digital assets to the same oversight as traditional securities, calling them "stocks by any other name" in a significant push for regulatory clarity in the evolving cryptocurrency landscape.
What to Know:
- Nasdaq wants the SEC to establish clearer categories for digital assets, with securities-like tokens regulated the same way regardless of form
- The SEC has dramatically shifted its cryptocurrency oversight approach since President Trump took office in January
- Financial infrastructure providers like DTCC are already laying groundwork to integrate blockchain technology into regulated markets
In its April 25 comment letter to the Securities and Exchange Commission, the exchange operator advocated for establishing a clearer taxonomy for cryptocurrencies, including categorizing some digital assets as "financial securities." Nasdaq argued these tokens should continue being regulated "as they are regulated today regardless of tokenized form."
"Whether it takes the form of a paper share, a digital share, or a token, an instrument's underlying nature remains the same and it should be traded and regulated in the same ways," Nasdaq stated in its letter to the federal agency that oversees U.S. securities markets.
The exchange giant also proposed classifying certain cryptocurrencies as "digital asset investment contracts" that would be subject to "light touch regulation" while still remaining under SEC jurisdiction.
This two-tiered approach reflects Nasdaq's view that not all digital assets warrant identical regulatory treatment.
Regulatory Transformation Under New Administration
The SEC has pivoted dramatically in its cryptocurrency oversight since President Donald Trump took office in January, abandoning its previous broad classification of digital assets as securities.
Under former Chair Gary Gensler's leadership, the agency maintained that virtually all cryptocurrencies except Bitcoin constituted investment contracts qualifying as securities. This interpretation fueled more than 100 lawsuits against crypto firms for alleged securities law violations, creating widespread uncertainty throughout the industry.
The regulatory landscape shifted when Trump nominee Paul Atkins was sworn in as SEC chair on April 21 following Senate confirmation. The commission has since claimed jurisdiction over a narrower segment of cryptocurrencies, signaling a more targeted approach to digital asset regulation.
In February, the agency released guidance stating that memecoins — if clearly presented as purely speculative assets with no intrinsic value — do not qualify as investment contracts under U.S. law. This was followed by an April announcement that stablecoins pegged to the U.S. dollar similarly do not qualify as securities when marketed solely as payment mechanisms.
These policy shifts represent significant departures from the previous administration's regulatory approach and align more closely with industry calls for nuanced classification of digital assets.
Integration into Traditional Finance
Nasdaq expressed confidence that existing financial infrastructure "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."
This integration process is already underway through initiatives from key market infrastructure providers. The Depository Trust & Clearing Corporation (DTCC), a private U.S. securities clearinghouse closely monitored by the SEC, has been developing foundations for incorporating blockchain technology into regulated financial markets.
In March, DTCC committed to promoting Ethereum's ERC-3643 standard for permissioned securities tokens, suggesting traditional finance institutions are preparing technical frameworks for regulated digital assets despite ongoing regulatory uncertainty.
Closing Thoughts
Nasdaq's push for clearer crypto regulation represents a significant industry effort to establish consistent rules for digital assets that function like traditional securities. As the SEC continues refining its approach under new leadership, the outcome will shape how cryptocurrencies integrate with conventional financial systems and determine which digital assets face securities-level scrutiny.