The American stock exchange Nasdaq has no plans to launch a crypto exchange immediately, according to Tal Cohen, its executive vice president.
Cohen stated that the retail market for crypto is saturated, and that there are many crypto exchanges available to meet the needs of retail investors. Cohen stated that the firm will continue to focus on crypto custody services, which were launched Sept. 20.
Cohen also provided some insight on other services related to crypto, such as building execution capabilities for the platform to move or transfer assets.
Although the world’s second largest stock exchange may be hesitant about launching a crypto-exchange in the United States of America, the firm partnered last year with XP, Brazil’s top brokerage service provider, to launch a crypto-exchange.
Although the crypto market has been through another price cycle like clockwork recently, policymakers in the United States have yet to provide a clear framework for bringing crypto markets under the law’s purview.
Gary Gensler, U.S. Securities and Exchange Commission (SEC), has been very vocal about the market’s vulnerabilities. Yet, despite many calls for clearer regulations by Congress, the U.S. still has not made much progress on the regulatory front.
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The SEC is continuing its enforcement actions against cryptocurrency firms and has increased its crypto enforcement team since earlier in the year. In response to increasing enforcement actions, despite lack of regulatory clarity and transparency, Senator Bill Hagerty (a member of Senate Banking Committee) introduced legislation that seeks to provide a safe harbor for crypto exchanges from “certain SEC enforcement actions”.
Not only are established players like Nasdaq prevented from entering the space but also existing crypto platforms have been affected by enforcement actions and penalties.