Nasdaq CEO Adena Friedman has revealed the stock exchange operator is open to accommodating cryptocurrency trades once regulatory kinks are worked out and the market matures. Until that happens, the company remains supportive of existing crypto exchanges.
On Wednesday, Friedman told CNBC’s Squawk Box:
“Certainly Nasdaq would consider becoming a crypto exchange over time. If we do look at it and say 'it's time, people are ready for a more regulated market,' for something that provides a fair experience for investors.”
Regulation continues to be the main stumbling block for Nasdaq and crypto investors, and it has to be ironed out before the company could add crypto exchange solutions. Nevertheless, Friedman was confident about the potential of digital assets.
“I believe that digital currencies will continue to persist it's just a matter of how long it will take for that space to mature. Once you look at it and say, 'do we want to provide a regulated market for this?' Certainly Nasdaq would consider it,” she said.
On the other hand, Friedman was not so tolerant of initial coin offerings (ICOs), the fundraising format that has become very popular within the crypto community. She said the ICOs have to be regulated and the Securities and Exchange Commission (SEC) was right to refer to ICO-based tokens as securities.
In reality, however, the SEC has been quite ambiguous when it comes to defining which tokens can be classified as securities and which can be considered commodities. Moreover, ICOs in the US have adopted a new approach to avoid SEC’s supervision. Thus, many ICOs use Simple Agreements for Future Tokens (SAFTs) to raise funds, primarily from accredited investors.
As for Nasdaq, it is currently keen on assisting existing crypto exchanges. On Wednesday, the stock exchange operator said it would partner with Gemini, the crypto platform founded by Tyler and Cameron Winklevoss. According to the agreement, Gemini will use Nasdaq’s surveillance technology to ensure its compliance and protect users from market manipulations.
This article appeared first on Cryptovest
