Nasdaq has informed the SEC that accurate cryptocurrency labeling will be key to future regulation

The Nasdaq exchange sent a letter to the US SEC Crypto Working Group, advising regulators to carefully divide the digital asset class and clearly supervise the "referee". The document, signed by John Zecca, the head of regulatory affairs, proposes four categories: first, financial security tokens (such as tokens linked to stocks, bonds, and ETFs, which should be treated the same as the underlying assets), which should be regulated by the SEC; second, digital asset investment contracts (tokenized contracts that meet the revised Howey test), which are subject to securities rules; third, digital asset commodities (in line with the US commodity definition), which are under the jurisdiction of the CFTC; fourth, other digital assets (not classified into the first three categories, and do not mandate the application of securities or commodity rules). The SEC and the CFTC will cooperate to clarify the regulatory boundaries, and the new cryptocurrency law may serve as a basis for guidance. Nasdaq also proposed establishing cross-trading qualifications for multi-type asset processing platforms, emphasizing its credibility in the digital asset sector, and calling for stronger security constraints for companies that comprehensively handle investor activities, in line with industry practices.