Market News

SEC and Nasdaq Collaborate on New Framework for Digital Asset Regulation

In a significant move, Nasdaq has formally urged the U.S. Securities and Exchange Commission (SEC) to classify certain digital assets as equivalent to securities.

This proposal, articulated in a recent comment letter, emphasizes the need for a clearer framework to categorize cryptocurrencies, treating them as “stocks by any other name.”

Nasdaq argues that regardless of their form—whether as paper shares or digital tokens—these instruments should be regulated consistently in accordance with existing securities laws.

Additionally, they propose that some cryptocurrencies be designated as “digital asset investment contracts,” which would still be overseen by the SEC but under lighter regulatory scrutiny.

This recommendation aligns with a notable shift in the SEC's approach to cryptocurrency regulation, especially under new leadership.

The SEC has recently displayed a willingness to embrace innovation within the crypto space, such as accepting an ETF filing from Bitwise Asset Management.

Furthermore, the agency's dismissal of a lawsuit against Dragonchain highlights a potential pivot towards a more flexible regulatory environment.

Market analysts predict that these changes may restore investor confidence and encourage growth in the cryptocurrency sector.

Both Nasdaq's recommendations and the SEC's evolving stance signal a pivotal moment for digital asset regulation in the United States.

As this regulatory landscape continues to clarify, it presents an opportunity for sustainable development and investment in the cryptocurrency market.