Nasdaq Requires Clear Regulations To Start Its Crypto Exchange
According to Tal Cohen, executive vice president of the company, Nasdaq, the American stock exchange, has no immediate intentions to create a cryptocurrency exchange until authorities have provided clearer regulatory certainty.
Cohen claimed that there are enough cryptocurrency exchanges serving the needs of retail investors and that the retail side of the cryptocurrency business is largely saturated. He further stated that his company would keep emphasizing its Sept. 20-launched cryptocurrency custody services.
Cohen also provided information about other cryptocurrency-related services that the exchange is developing, such as constructing execution capabilities for moving and transferring assets on the platform.
The second-largest stock exchange in the world might be reluctant to start a cryptocurrency exchange in the US, but the company teamed up with Brazil’s top brokerage service provider XP to start a cryptocurrency exchange last year.
Like clockwork, crypto market has experienced another price cycle – Nasdaq
However, American politicians have not yet presented a clear plan for bringing the market into compliance with the law.
Despite repeated requests from Congress for clearer laws, the United States hasn’t made much progress on the regulatory front. Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), has been extremely outspoken about the vulnerabilities that the developing market presents.
The SEC boosted its crypto enforcement division earlier this year and has continued to take enforcement proceedings against cryptocurrency firms. Senator Bill Hagerty, a member of the Senate Banking Committee, filed legislation seeking a safe harbor for cryptocurrency exchanges from “some” SEC enforcement actions as a result of expanding enforcement activities despite a lack of regulatory certainty.
Nasdaq and other well-known companies are unable to enter the market due to a lack of laws, but even currently operating crypto platforms in the nation have occasionally suffered as a result of enforcement actions and fines.
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