Nasdaq is revolutionizing the future of digital assets with a bold framework to seamlessly fuse crypto into U.S. capital markets while safeguarding investors, laying the groundwork for a major financial transformation.
Nasdaq Unveils Ambitious Digital Asset Integration Framework
Nasdaq Inc. has proposed a comprehensive new regulatory framework aimed at integrating digital assets into the existing U.S. capital markets without compromising investor protections.
In a letter dated April 25 to U.S. Securities and Exchange Commission (SEC) Secretary Vanessa Countryman, Nasdaq’s executive vice president and global chief legal, risk, and regulatory officer, John A. Zecca, explained that Nasdaq’s vision revolves around creating a structured taxonomy and modernizing trading systems. Framing clear asset classification as the cornerstone of future digital asset regulation, Zecca emphasized:
A successful taxonomy would include clear categories and a process to manage change going forward as the industry evolves.
The proposed framework by Nasdaq sets out a four-tier system, categorizing digital assets as Financial Securities, Digital Asset Investment Contracts, Digital Asset Commodities, and Other Digital Assets.
Nasdaq argued that traditional regulatory requirements should continue to govern Financial Securities even when tokenized: “Whether it takes the form of a paper share, a digital share, or a token, an instrument’s underlying nature remains the same and it should be traded and regulated in the same ways.”
To support innovation while protecting investors, Nasdaq suggested establishing a specialized trading venue called “ATS-Digital” or “ATS-D” to facilitate trading of commodities, investment contracts, and unclassified digital assets under lighter but still meaningful oversight. Zecca proposed: “Create a new category of ATS called ‘ATS-Digital’ or ‘ATS-D’ that may trade Digital Asset Investment Contracts, Digital Assets Commodities, Other Digital Assets, and Temporarily Unclassified Digital Assets in its own appropriately regulated ecosystem.”
Additionally, Nasdaq called for a voluntary safe harbor mechanism for digital assets that do not fit neatly into existing classifications. This safe harbor would allow trading under risk-based disclosures while regulators finalize asset designations. Zecca stressed that innovation should always prioritize investor safety: “Innovation must serve the interests of investors, and not the other way around.”
By recommending coordinated efforts between the SEC, the Commodities Futures Trading Commission (CFTC), and Congress, Nasdaq expressed confidence that the U.S. could foster a dynamic digital asset environment while maintaining the integrity and resilience of its markets:
The Commission can establish an attractive path for integrating digital asset technology into the capital markets.
