Recently, with their market cap sitting at nearly $9 trillion USD, Nasdaq has set their hearts on becoming the next big cryptocurrency exchange and making it a more regulated market. This was recently announced by the company’s CEO who mentioned that the project who be in collaboration with Gemini Cryptographic Money Exchange, a cryptocurrency exchange founded by two prominent figures in the industry, the Winklevoss brothers.
Regulations Still Represent a Major Obstacle
For most experts, there is no doubt that cryptocurrency is here for good and it’s only a matter of time for the industry to become more regulated. However, as it stands, the lack of regulation in the industry still constitutes a major obstacle for major investors and Nasdaq’s CEO, Adena Friedman, believe that this issue must first be remedied before they can create their own exchange.
While Friedman is optimistic about the future of cryptocurrency, she is much more hesitant when it comes to their fundraising process known as an ICO (Initial Coin Offering). For her, ICOs are nothing but titles and she believes that the SEC’s (Securities and Exchange Commission) decision to deem them as securities was well founded.
In Support of Existing Exchanges
Elsewhere, the company has also partnered with Reality Shares, a San-Diego based company that is offering blockchain solutions to the real estate market. The partnership was formed with the goal of launching two separate funds based on blockchain technology.
According to the CEO of Reality Shares, Eric Ervin, if he were to class Nasdaq’s interest in cryptocurrency on a scale from 1 to 10, he would place them as a 6. Moreover, he also added that Adena Friedman seems like she could be a major benefit to the SEC when it comes to dealing with and regulating ICOs. This level of interest clearly shows that Nasdaq supports the growth of the industry and could soon be a key player as a cryptocurrency exchange.
The SEC Monitors ICOs
Earlier at the beginning of this year, the United State’s SEC launched a formal survey to monitor the evolution of the cryptocurrency market. This unregulated market was brought to their attention after Bitcoin’s prices soared to nearly $20,000 last. Furthermore, the SEC has been closely monitoring all ICOs and has already cracked down on several fraudulent cases so far this year.
In other news, the SEC also announced back in March 2018, that they were to begin regulating the industry and enforcing security laws on cryptographic exchanges and digital wallets that operate within the country. Furthermore, Jay Clayton, Chairman of the SEC, has recently announced that the organization already devotes a massive part of their resources to monitoring these unregulated markets, and will continue to do so.