NASDAQ urges the SEC to treat certain digital assets as ‘stock of any other name’
The NASDAQ urged the US Securities and Exchange Commission (SEC) to hold digital assets in the same regulatory criteria as security if they form “stock of any other name,” according to a letter of comment on April 25.
The exchange Says The US financial regulator will need to establish a clearer taxonomy for cryptocurrencies, including classifying a portion of digital possessions as “financial security.” Those tokens, Nasdaq argued, should continue to be regulated “as they are now controlled regardless of the tokenized form.”
“If you take the form of a part of the paper, a digital part, or a token, the underlying instrument remains the same and it should be exchanged and regulated in the same way,” the letter said.
It also suggested the classification of a portion of cryptocurrencies as “Digital Asset investment contracts,” which is subject to “light touch regulation” but still administered by SEC.
Related: Some stablecoins are not security, Sec says to the new guidance
Regulation U-Turn
The SEC has noted its stance in cryptocurrency oversight since President Donald Trump Donald Trump in January.
Under the leadership of former Chair Gary Gensler, the SEC took the position that almost all cryptocurrencies, except Bitcoin (Btc), represents investment contracts and therefore qualify as security.
This stance led the agency to bring up 100 suits against crypto companies for alleged security law violations.
However, under Trump’s nominee Paul Atkins, who swore as a seat on April 21 After a long confirmation in the Senate, the SEC claimed the jurisdiction into a narrower segment of cryptocurrencies.
In February, the agency released a guide stating that the Memecoins -if clearly identified as concentrated speculation -of -the -owned amounts of intrinsic – Do not qualify as investment contracts in accordance with US law.
In April, the SEC said the Stablecoins – digital tokens that were lying in the US dollar – similarly they would not qualify as security if they had been -market only as a way of making payments.
Crypto integration with tradfi
In a letter on April 21, Nasdaq said the existing financial infrastructure “can easily absorb digital assets by promoting proper taxonomy and calibration of some policies to show what is really new and novels about digital ownership.”
The Depository Trust & Clearing Corporation (DTCC) – a private US Securities clearinghouse closely administered by the SEC – places a foundation for integrating blockchain technology into regulated financial markets.
In March, the DTCC focused on establishing ERC-3643’s ERC-3643 standard For the allowable security tokens.
Magazine: Ethereum destroys competition in the race of tokenization tradfi tokenization
