Nasdaq Proposes SEC Crypto Asset Classification Reform – Coincu

Nasdaq has recommended a new classification framework for digital assets to the U.S. SEC, aiming to enhance regulatory clarity. The exchange operator seeks to promote a predictable regulatory environment for these assets.

The proposal is intended to facilitate clear regulatory roles, potentially impacting how digital assets are traded and listed on United States platforms. This could lead to increased participation by institutional investors.

Nasdaq’s Proposal Targets SEC for Digital Asset Clarity

Nasdaq has suggested a new framework to the U.S. Securities and Exchange Commission (SEC) to categorize digital assets under four major categories. This proposal is in response to SEC Commissioner Hester Peirce’s request for feedback on future crypto regulation. Nasdaq’s proposal includes classifying digital assets based on attributes such as security token assets tied to traditional securities, digital asset investment contracts meeting the Howey Test, commodities, and other assets.

Nasdaq’s Chief Regulatory Officer, John Zecca, emphasized, “The existing market can fully embrace the innovative features of digital assets by establishing reasonable classifications and adjusting rules to promote their orderly development within the regulatory system.”

This action by Nasdaq signals potential pathways for regulated venues to integrate digital assets. Current market infrastructures may need adjustments but can embrace the innovative features of digital assets.

The proposal attracted attention from industry participants and institutional players considering its implications on digital asset trading and listing. Hester Peirce, known for advocating crypto-friendly policies, prompted this response, highlighting the need for precise regulatory guidance.

Bitcoin Price Climbs as Nasdaq Urges Regulatory Change

Did you know? Nasdaq’s proposal refines earlier approaches where regulatory bodies disagreed on digital asset jurisdiction, potentially resolving longstanding market uncertainties.

According to CoinMarketCap, Bitcoin (BTC) holds a price of $95,135.99 with a market cap of 1,889,029,062,368.60. Recent trends show a 12.62% rise over seven days. The 24-hour trading volume reached 41,797,263,624.42. These figures may impact investor sentiments amid evolving regulation.

The Coincu research team suggests that greater regulatory clarity could lead to increased institutional investment in digital assets. Historical trends indicate that regulatory guidance often reduces market volatility, enhancing overall market stability.