Nasdaq has advised the SEC to establish a highly specific classification system for cryptocurrencies to promote effective regulation. In a letter to the SEC's cryptocurrency task force, Nasdaq emphasized the need for clarity, proposing four distinct categories: financial securities, digital asset investment contracts, digital asset commodities, and other digital assets. This categorization is crucial to determine the appropriate regulatory body. Nasdaq suggests the SEC should oversee securities-based crypto assets, while the CFTC should regulate commodities. Furthermore, Nasdaq recommends a formalized cross-trading framework between the SEC and CFTC. This framework would enable a single platform to handle various digital assets, including investment contracts and commodities, streamlining the trading process and fostering innovation in the crypto space. Clear guidelines are essential for investor protection and market stability. ```

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