Nasdaq Pushes SEC for Four-Tier Crypto Rulebook, Demands Clarity

Nasdaq, one of the largest stock exchanges in the world, has called on the U.S. Securities and Exchange Commission (SEC) to establish a comprehensive, four-tier rulebook for the cryptocurrency industry, demanding much-needed regulatory clarity for digital assets. In a recent statement, Nasdaq emphasized that the current regulatory framework for cryptocurrencies is insufficient and has created significant uncertainty for both investors and companies operating within the space.

The proposal suggests a tiered approach, with regulations tailored to different categories of crypto assets. The first tier would apply to well-established cryptocurrencies, such as Bitcoin and Ethereum, which have demonstrated stability and widespread adoption. The second tier would address emerging cryptocurrencies and tokens, while the third tier would focus on more experimental or niche assets. Finally, the fourth tier would target crypto-related services and platforms that engage in non-tokenized activities, such as exchanges and wallet providers.

Nasdaq’s push for a clear, multi-tiered framework aims to bring structure and consistency to the regulatory landscape, which many in the crypto industry argue is fragmented and inconsistent across jurisdictions. Without clear guidelines, companies face challenges in ensuring compliance, and investors are left navigating a complex web of rules that vary significantly depending on the state or regulatory body involved.

“The absence of a consistent regulatory approach is hindering the growth of the digital asset market,” said Adena Friedman, CEO of Nasdaq, in a statement. “A well-defined, four-tier rulebook would provide the clarity needed to foster innovation while ensuring adequate consumer protection.”

In addition to the tiered structure, Nasdaq also advocates for more transparency in the SEC’s regulatory decision-making process. The exchange believes that a clear set of rules would help reduce legal ambiguity for crypto firms, allowing them to operate with greater confidence and reducing the risk of costly legal battles over the classification of digital assets.

The call for a comprehensive crypto rulebook comes amid growing interest in cryptocurrencies, with more institutional investors and mainstream companies entering the market. However, the regulatory uncertainty surrounding digital assets has also led to a number of high-profile enforcement actions, such as the ongoing legal dispute between the SEC and Ripple Labs regarding the classification of XRP as a security.

Nasdaq’s proposal could have a significant impact on the future of crypto regulation, especially if the SEC decides to adopt a more structured and nuanced approach to digital assets. A tiered system could make it easier for regulators to address the unique characteristics of different crypto assets while ensuring that regulatory measures are proportionate to the risks posed by each asset class.

While the SEC has made progress in addressing certain aspects of cryptocurrency regulation, such as approving Bitcoin futures ETFs and providing guidelines for stablecoins, many in the industry feel that more work is needed to bring regulatory clarity to the broader crypto space.

As discussions about the future of cryptocurrency regulation continue, Nasdaq’s call for a clear, four-tier framework may set the stage for more structured and transparent rules, potentially reducing the regulatory uncertainty that has held back the full potential of the cryptocurrency market.