Nasdaq, a prominent U.S. stock exchange operator and crypto index provider, has submitted a 23-page letter to the Securities and Exchange Commission's crypto task force, advising regulators to focus on categorizing digital assets into four distinct buckets.
This classification will determine which agency oversees each category. The letter, signed by John Zecca, Nasdaq's chief regulatory executive, argues that establishing a proper taxonomy and tailoring rules to reflect the unique aspects of digital assets will enable the existing market ecosystem to absorb them seamlessly.
Nasdaq proposes that digital assets be categorized into four groups, with the SEC and the Commodity Futures Trading Commission working together to define their respective jurisdictions. The company suggests that platforms handling multiple types of assets, including digital asset investment contracts and commodities, should be subject to a crossover trading designation. Nasdaq highlights its experience in supporting digital asset platforms across six continents and recommends that regulators consider implementing safety measures and constraints on firms that handle investor activities from start to finish.