The NASDAQ, the operator of one of the first American scholarships and a crypto index, advises American regulators to focus carefully on the definition of digital assets in four buckets that will clearly determine which agency acts as a referee, according to a 23 -page letter sent to the crypto working group of the Securities and Exchange Commission.
“While a stock by any other word would always be a stock, the ecosystem of the existing market can easily absorb digital assets by establishing appropriate taxonomy and by calibrating certain rules to reflect what is really new and new on digital assets,” said the letter in response to the invitation published by the head of the working group, Commissioner Hester Peirce, to weigh on future regulations.
The four future categories of digital assets, according to the NASDAQ, should be:
- Financial securities (tokens linked to assets which are securities under existing definitions, such as shares, bonds and funds negotiated on the stock market (ETF), which, according to the NASDAQ, should be treated in the same way as their underlying assets);
- Digital asset investment contracts (tokenized contracts that check all the titles boxes under a “clarified version” of the so-called Supreme Court test);
- Digital asset conveniences (meeting the American definition of products)
- Other digital assets (things that do not fall anywhere else and should not have rules for titles or the raw materials imposed on it)
The categories of securities belong to the hands of the SEC, which will work with its cousin agency, the Commodity Futures Trading Commission, which will manage the products. These agencies – probably directed at a given time by a new cryptography law developed by the Congress – will determine the precise border between their jurisdictions.
The letter, signed by John Zecca, head of the company regulator of the company, argued that “the digital assets which constitute financial titles must negotiate as they do today”.
NASDAQ also suggested that the two agencies should formulate a kind of cross negotiation designation for platforms that can manage digital asset investment contracts, basic products and other types of assets under the same roof.
In the letter, the NASDAQ highlighted its credibility of digital assets, claiming that its “negotiation and compensation services, market surveillance and trade, and central Securities Depository Technology, take charge of digital asset platforms on six continents”. He argued that regulators should consider imposing security measures or other constraints on companies wishing to manage the activity of investors from top to bottom, which is the common approach to existing cryptographic companies.
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