Nasdaq Proposes New Framework for Digital Assets Regulation to U.S. SEC: A Step Toward Clarity for Cryptocurrency

On April 25th, COINOTAG reported that Nasdaq has formally reached out to the U.S. Securities and Exchange Commission (SEC) with a proposal to categorize **cryptocurrency** into four distinct classifications. This initiative is in direct compliance with the SEC Commissioner Hester Peirce’s call for input on the evolution of **crypto regulation**, aiming to foster a coherent regulatory landscape. Nasdaq’s suggestions include: classifying **security token assets** that are linked to traditional securities, **digital investment contracts** that satisfy the **Howey Test**, **digital asset commodities** adhering to commodity definitions, and a catch-all group for “other digital assets” that don’t fit into these categories. The proposal underscores the necessity for establishing clear categories to not only enhance regulatory clarity but also to leverage the innovative potential of digital assets within a structured framework, paving the way for their secure growth in the financial market.