Nasdaq Urges SEC to Adopt Precise Crypto Classification Framework

Nasdaq has submitted a detailed proposal to the U.S. Securities and Exchange Commission advocating for a four-tiered classification system for digital assets. The 23-page letter emphasizes that clear regulatory taxonomy will be critical as crypto markets mature.

The exchange operator argues that existing financial infrastructure can accommodate digital assets through calibrated rulemaking. "While a stock by any other word would still be a stock," the filing notes, "the market needs precise definitions to properly govern what’s novel about crypto assets."

Commissioner Hester Peirce’s crypto task force had solicited industry input on future regulations. Nasdaq’s response focuses on creating distinct buckets that would determine which regulatory body oversees different asset types, though the document cuts off before detailing all four proposed categories.