Nasdaq Urges SEC to Recognize Some Crypto Assets as Securities

In a move that could significantly impact the cryptocurrency landscape, Nasdaq has suggested that the U.S. Securities and Exchange Commission (SEC) regulate certain crypto tokens as traditional securities. This recommendation comes amidst ongoing debates about how best to oversee rapidly evolving digital asset markets.

A Call for Consistent Regulation

On April 25, 2025, Nasdaq submitted a letter to the SEC proposing that crypto assets exhibiting characteristics similar to stocks should be regulated akin to securities. The exchange emphasized that these tokens should be subject to identical regulatory standards regardless of their form—whether paper-based or digital. Furthermore, Nasdaq advocated for a distinct category for “investment contracts in digital assets,” which could allow for streamlined regulations while maintaining overall oversight.

Shifts in Regulatory Approach

The landscape of crypto regulation is evolving under new leadership at the SEC. Following Donald Trump’s appointment as President of the United States, Paul Atkins was sworn in as chairman on April 21, 2025. Unlike his predecessor Gary Gensler, who classified some tokens as securities, Atkins appears inclined towards narrowing the agency’s jurisdiction. Currently, memecoins and stablecoins may not fall under regulation as investment contracts under specific conditions.

Navigating Regulatory Changes and Implications

As part of its strategic realignment, the SEC plans to review or repeal several guidelines regarding crypto asset risks. Of particular note is an examination of guidance related to applying the “Howey Test” towards cryptocurrencies—a document initially published in 2019 and updated in 2024—which has been frequently cited by courts when determining whether crypto assets are investment contracts.

The Path Forward: Integration with Traditional Finance

Nasdaq’s correspondence highlights readiness within traditional financial infrastructure to integrate digital assets effectively if regulatory frameworks are appropriately configured. This transition marks an essential step toward bridging conventional finance with emerging digital markets.
In summary, Nasdaq’s recommendations point toward potentially significant shifts in how cryptocurrencies might be regulated by aligning them more closely with existing financial standards. These developments underscore an ongoing transformation within regulatory approaches towards digital currencies and their broader integration into established market structures.