Nasdaq has urged the US Securities and Exchange Commission (SEC) to hold digital assets to the same regulatory standards as securities if they constitute “stocks by any other name,” according to an April 25 comment letter. 

The exchange said the US financial regulator needs to establish a clearer taxonomy for cryptocurrencies, including categorizing a portion of digital assets as “financial securities.” Those tokens, Nasdaq argued, should continue to be regulated “as they are regulated today regardless of tokenized form.”

“Whether it takes the form of a paper share, a digital share, or a token, an instrument’s underlying nature remains the same and it should be traded and regulated in the same ways,” the letter said. 

It also proposed categorizing a portion of cryptocurrencies as “digital asset investment contracts,” to be subject to “light touch regulation” but still overseen by the SEC.

Nasdaq’s April 25 letter to the SEC. Source: Nasdaq

Related: Certain stablecoins aren’t securities, SEC says in new guidance

Regulatory U-turn

The SEC has dramatically pivoted its stance on cryptocurrency oversight since US President Donald Trump took office in January. 

Under the leadership of former Chair Gary Gensler, the SEC took the position that practically all cryptocurrencies, with the exception of Bitcoin (BTC), represent investment contracts and therefore qualify as securities. 

This stance led the agency to bring upwards of 100 lawsuits against crypto firms for alleged securities law violations.

However, under Trump nominee Paul Atkins, who was sworn in as chair on April 21 after a lengthy Senate confirmation, the SEC has claimed jurisdiction over a narrower segment of cryptocurrencies. 

In February, the agency issued guidance stating that memecoins — if clearly identified as purely speculative assets with no intrinsic value — do not qualify as investment contracts pursuant to US law. 

In April, the SEC said that stablecoins — digital tokens pegged to the US dollar — similarly do not qualify as securities if they are marketed solely as a means of making payments.

Stablecoin market overview. Source: RWA.xyz

Integrating crypto into TradFi

In its April 21 letter, Nasdaq said existing financial infrastructure “can readily absorb digital assets by establishing the proper taxonomy and calibrating certain rules to reflect what is truly new and novel about digital assets.”

The Depository Trust & Clearing Corporation (DTCC) — a private US securities clearinghouse closely overseen by the SEC — has been laying the foundation for integrating blockchain technology into regulated financial markets.

In March, the DTCC committed to promoting Ethereum’s ERC-3643 standard for permissioned securities tokens.

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

US President Donald Trump’s first 90 days in office have been miserable for Bitcoin (BTC) and the broader cryptocurrency industry. Despite positive regulatory developments, culminating in the first-ever White House crypto summit on March 7, digital asset prices have been dragged down by the currents of trade war and fear of recession.

However, crypto saw a huge sentiment shift this week amid reports that Trump was backing off on his full-scale tariff war against China. It also didn’t hurt that Trump’s media empire, Trump Media and Technology Group, inked a deal with Crypto.com for its forthcoming Made in America exchange-traded funds (ETFs).

This week’s Crypto Biz newsletter covers renewed inflows into Bitcoin ETFs, a potential crypto venture backed by Cantor Fitzgerald, and Coinbase’s possible pursuit of a federal banking charter. It wraps up with a look at Tesla’s decision to hold its Bitcoin position despite a disappointing earnings quarter.

Bitcoin ETFs see largest inflows since January

Capital is flowing back into US spot Bitcoin ETFs, highlighting a positive sentiment shift among institutional investors. 

According to Glassnode data, the 11 spot Bitcoin ETFs registered $381.3 million in net inflows on April 21, with the ARK21Shares Bitcoin ETF accounting for nearly a third of the total. 

One day later, the 11 funds registered $912.7 million in net inflows, the largest since January when Bitcoin was trading at all-time highs. The ARK21Shares, Fidelity and BlackRock Bitcoin funds saw the largest inflows on April 22. 

As billions flowed back into Bitcoin ETFs, spot BTC prices climbed back to $94,000 on April 23, pushing the total cryptocurrency market cap close to the $3 trillion mark again.

Net inflows to US spot Bitcoin ETFs are surging again. Source: Coinglass

Cantor Fitzgerald is backing $3B crypto venture: Report

Cantor Fitzgerald is reportedly in talks with Softbank, Tether and Bitfinex to establish a $3 billion crypto acquisition company called 21 Capital. 

According to an April 23 report by the Financial Times, the new company aims to capitalize on the favorable crypto environment in the United States following US President Donald Trump’s election. It also seeks to emulate the success of Strategy, the business intelligence firm turned Bitcoin bank that has amassed more than 534,000 BTC. 

The report suggested that stablecoin issuer Tether will contribute $1.5 billion to the new venture. Softbank is expected to add $900 million and Bitfinex another $600 million. 

21 Capital is reportedly eyeing another $350 million raise via convertible bonds alongside a $200 million private equity placement. The proceeds will reportedly be used to buy Bitcoin.

Cantor Fitzgerald is led by Brandon Lutnick, the son of Howard Lutnick (right), who became President Trump’s Secretary of Commerce. Source: White House

Coinbase weighs US banking license

Coinbase is considering applying for a United States federal bank charter, potentially signaling the cryptocurrency exchange’s intention to move into traditional banking services.

A spokesperson for Coinbase confirmed to Cointelegraph that the exchange was considering this option, but did not elaborate on the reasons why.

“This is something Coinbase is actively considering but has not made any formal decisions yet,” the spokesperson said.

A US federal bank charter is significant because it allows licensees to perform core banking activities, including deposit taking and lending. For crypto exchanges like Coinbase, obtaining such a charter could represent a major step toward integrating traditional banking with digital assets.

Tesla HODLs Bitcoin despite earnings slump

Electric vehicle maker Tesla reported disappointing first-quarter earnings this week but opted to hold onto its Bitcoin investments, signaling that Elon Musk’s company still sees significant upside in digital asset prices.

Tesla’s net income plunged 71% in the first quarter, with revenue falling 9% and automotive sales down 20% year over year.

Tesla’s disappointing earnings highlight the folly of mixing business and politics, with the results partly attributed to Musk’s role in Trump’s White House.

Despite the earnings slump, Tesla held firm on its digital asset position, maintaining 11,509 BTC — unchanged since 2022. At current prices, that stake is valued at just under $1.1 billion.

Tesla’s Bitcoin investments. Source: BitcoinTreasuries.NET

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In one of his first appearances as the recently sworn-in chair of the US Securities and Exchange Commission, Paul Atkins delivered remarks to the agency’s third roundtable discussion of crypto regulation. 

In the “Know Your Custodian” roundtable event on April 25, Atkins said he expected “huge benefits” from blockchain technology through efficiency, risk mitigation, transparency, and cutting costs. He reiterated that among his goals at the SEC would be to facilitate “clear regulatory rules of the road” for digital assets, hinting that the agency under former chair Gary Gensler had contributed to market and regulatory uncertainty. 

“I look forward to engaging with market participants and working with colleagues in President Trump’s administration and Congress to establish a rational fit-for-purpose framework for crypto assets,” said Atkins.

SEC chair Paul Atkins addressing the April 25 crypto roundtable. Source: SEC

Some critics of US President Donald Trump see Atkins’ nomination to lead the SEC as a nod to the crypto industry, acting on campaign promises to remove Gensler — the former chair resigned the day Trump took office — and cut back on regulation. Democratic lawmakers on the Senate Banking Committee questioned Atkins on his ties to the industry, potentially presenting conflicts of interest in his role regulating crypto.

Related: Atkins SEC era sparks massive industry optimism, crypto execs speak out

The direction of the SEC under new leadership

“We’ve noticed that we don’t have to be as concerned […] about being accused of things that we’re not doing, like being broker-dealers for securities,” Exodus chief legal officer Veronica McGregor, who participated in the roundtable, told Cointelegraph on April 24.”It’s just a less scary regulatory environment in general. It is, however, still unclear what the ultimate regs are going to look like for crypto.” 

The SEC crypto task force is scheduled to hold two more roundtables in May and June to discuss tokenization and decentralized finance, respectively. Commissioner Hester Peirce, who leads the task force, told Cointelegraph in March that she welcomed the opportunity to work with Atkins to “reorient the agency,” hinting at an SEC with regulations more favorable to the crypto industry.

In addition to the roundtables, the crypto task force has reported several meetings with digital asset firms to discuss various policies and considerations in developing a regulatory framework.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered