Nasdaq Proposes SEC Reform to Clarify Crypto Asset Classification

Nasdaq has submitted a proposal to the SEC that aims to establish a clear classification framework for digital assets. Led by John Zecca and supported by figures such as Commissioner Hester Peirce, the proposal intends to define crypto assets by categorizing them as securities, commodities, or other types. The objective is to streamline digital asset integration within the existing market ecosystem, thereby providing regulatory clarity and boosting investor protection. The reform could have significant implications for various digital assets, particularly for Bitcoin and Ethereum, as it may enhance institutional engagement and regulatory transparency. Historically, past attempts at crypto classification have been hindered by regulatory ambiguity, and this initiative is viewed as a potentially positive turning point for market cohesion and investor confidence.