Nasdaq To Launch Crypto Exchange But Not Until Regulatory Clarity Arrives

Nasdaq will wait until there is regulatory certainty around the crypto markets before venturing into the sector. The executive vice president and the head of North American markets, Tal Cohen, outlined the company’s hesitance to move into the crypto sector.

Nasdaq to launch crypto exchange when regulations arrive

Nasdaq will only launch a cryptocurrency exchange if regulatory clarity and the rate of institutional adoption for crypto assets grow. If these conditions are met, Cohen says the company will consider launching an exchange platform.

While speaking in an interview with Bloomberg, Cohen said that it was willing to hold discussions on the matter. However, the retail sector currently dominates the market, and many exchanges are already serving the retail market.

“Those are discussions we are happy to have. But right now, on the retail side, the market is fairly saturated. There’s a number of exchanges servicing the retail customer base,” Cohen said.

The company has also said it would remain focused on cryptocurrency custody services. According to Cohen, these services set a foundation for clients. He also said that the growing demand for these services made it an opportunity that the firm needed to explore.

According to Cohen, if the company can provide a haven for people’s assets, it could be trusted in other services it would launch in the future. Besides offering custody services, Nasdaq is committed to working on its execution capabilities to support transactions and transfers in crypto assets.

Crypto custody services seem to be witnessing a growing demand, and trading platforms seem to be pivoting to the sector. In September, the second largest stock exchange globally announced plans to provide custody services for Bitcoin and Ether to institutional investors.

The firm also hired the services of Ira Auerbach. The latter operated a prime brokerage service at the Gemini cryptocurrency exchange. Auerbach will be the new head of the Digital Assets unit at Nasdaq.

Crypto regulations in the US

The US Securities and Exchange Commission (SEC) has been vocal about the weaknesses in the regulatory framework for cryptocurrencies. However, while Congress and legislators have been calling for a clear crypto regulatory framework, the US has not made much effort.

The crypto community has been calling out the SEC for regulating through enforcement. Earlier this year, the regulatory body increased its crypto enforcement team. Due to a rise in enforcement actions, US Senator Bill Hagerty proposed a bill seeking a safe harbor for cryptocurrency social trading platforms from several enforcement actions by the SEC.

The lack of regulations in the crypto sector is preventing traditional players from dipping their toes into the crypto sector. Moreover, the existing cryptocurrency exchanges in the country have also suffered notable losses over time because of enforcement actions and fines imposed against these companies.

This year, the cryptocurrency market has suffered from a notable decline. The market has lost two-thirds of its value this year. The global crypto market cap hit $3 trillion in November last year but dropped to around $1 trillion. The collapse of Terra Luna in May this year and the bankruptcy of several crypto firms have increased calls for regulations.

However, the crypto market is showing signs of promise as crypto prices show signs of recovery. New tokens such as IMPT are taking over the market. IMPT token is green crypto committed to achieving economic sustainability.

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