Nasdaq’s CEO, Adena Friedman, stated on CNBC’s Squawk Box that the firm definitely would consider joining the ranks of other crypto exchanges at some point. Doing something like that, however, isn’t as simple as it might sound, and there are many parameters that need to be met for such development to become a reality.
Nasdaq needs proper conditions
First of all, there is a need for the nascent cryptocurrency space to become mature enough and reach a certain level of stability. Proper regulation is something that can’t be overlooked, but even that is only a fraction of all the conditions that are needed for Nasdaq to decide and make such a move. However, even though this idea is not currently achievable, the simple discussion about it is expected to be enough to provoke a reaction from the crypto world.
Friedman also stated that the company might be prepared to change its policy if they see that people are prepared for such a change. If the company decides that the investors will be able to receive a fair experience, it might decide to make that step finally.
However, both Nasdaq, as well as many others, are still concerned when it comes to the crypto market. The biggest issue revolves around regulation, that needs to be taken seriously and be dealt with accordingly. Despite the fact that Friedman herself is interested in adding an official exchange to Nasdaq, the regulatory question still comes first.
Nasdaq gives its support to already existing exchanges
Despite the fact that Nasdaq still doesn’t have its own crypto exchange, that doesn’t mean that the company is opposing them. In fact, they have already given their support to crypto exchanges.
This can clearly be seen by looking at the recent announcement of the company’s collaboration with the exchange called Gemini. Tyler and Cameron Winklevoss founded Gemini, and through this partnership, it gained access to Nasdaq’s surveillance tech. This was done for the exchange to protect its marketplace, which was described as rules-based and fair.
However, there is another part of the crypto business that even Friedman was much less optimistic about. This, of course, includes the issue of ICOs. According to her, ICOs are in need of very strong regulations. She also stated that the SEC has a point and that ICOs are actual securities. Because of that, they need to be treated as such and properly regulated as a result.
ICO-related frauds are a common occurrence these days and are mostly targeting gullible investors. SEC has already made a move that aims to deal with this problem last month. The plan is to create and apply proper securities laws that would include all businesses, products, and activities that involve cryptocurrencies. Naturally, this means that everything, from wallets to exchanges will need to respect and follow these laws.