Nasdak topped the headlines with her recent proposal aimed at clarifying how to define and organize cryptocurrencies. By classifying encrypted currencies into four distinct groups, the initiative seeks to define the organizational bodies responsible for supervision. This step comes as American organizational agencies are increasingly urged to convert their focus towards the cryptocurrency scene.
What are the categories that Nasdak proposes? How will censorship be distributed?
What are the categories that Nasdak proposes?
Under the Nasdaq proposal, cryptocurrencies will be included in four categories: financial securities, investment contracts in cryptocurrencies, cryptocurrencies, and other cryptocurrencies. This organized classification aims to create a clear discrimination between recognized assets such as securities and those that do not fulfill this standard. The plan emphasizes the need to obtain explicit guidance in relation to investment contracts in the encrypted currency, taking into account the judicial interpretations.
How will censorship be distributed?
The proposed framework includes allocating control responsibilities between the Securities Committee and the American Stock Exchange (SEC) and the CFTC. It is noteworthy that SEC will manage encrypted securities, while CFTC will oversee encryption goods. The suggestion claims that the division of responsibility will be more clear if a new legislation is enacted regarding encrypted currencies.
Nasdak emphasizes that their trading systems are equipped to deal with these assets, operating across the world across six continents. In addition, it is proposed to implement more measures to allow coded currency trading platforms to monitor investor activities more effectively.
John Zecca pointed out that cryptocurrencies that consider securities will need compliance with the rules of current market transactions, echoing the need for organized control.
The suggestion highlights that the appropriate classification and regulatory improvements can enhance the ecosystem of the current digital asset market. By addressing these issues, NASDAQ aims to enhance a more efficient organizational environment that can reduce mystery to all market participants.
- Classification into four specific categories promotes organizational clarity.
- The distribution of the suggested supervision between SEC and CFTC aims to effective management.
- The infrastructure in Nasdak supports the proposed organizational framework in the world.
As discussions on a comprehensive regulatory framework for progress in digital assets, Nasdaq’s proposals will significantly contribute to reducing uncertainty in the market, and thus strengthening supervision and compliance mechanisms.
Slip: The information in this article does not constitute an investment advice. Investors should be aware that cryptocurrencies carry high fluctuations and thus risks, and therefore their own research should take place.
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