As the decision of rejecting a cryptocurrency-based exchange traded fund (ETF) was being made by the U.S. Securities and Exchange Commission, NASDAQ, world’s second largest stock exchange, was holding a closed door meeting to decide its cryptocurrency policy concerning the consolidation of cryptocurrency market.
As reported by Bloomberg, Nasdaq seems fully invested in the vision taking the world of cryptocurrency towards stability, away from all the fraudulent and manipulative activities. In order to achieve this goal, a closed door meeting was recently held with the top-level representative of approximately half a dozen major financial spearhead companies in Chicago. Among these companies, the representation of Gemini, a company whose co-founders faced rejection on the establishment of a bitcoin exchange traded-fund (ETF) by the SEC, were also present.
The major goal of this closed door meeting was to develop strategies to improve the notorious image of the cryptocurrency market across the globe, and emphasize its importance in the financial framework. Regulations that are required on the market of cryptocurrencies were also discussed in detail. Nasdaq’s Chief Executive Officer also expressed her desires regarding the implementation of proper regulatory framework, and for this purpose, has elaborated her intent for collaboration with various exchanges.
I do believe that over time we’re going to find that there is really utility. CEO Nasdaq
The secrecy of the meeting was exposed even further when Nasdaq spokesmen denied to put out any comment about the happenings of the meeting. Gemini representatives also denied to put out any comment regarding the closed door meeting.
The CEO of Nasdaq has shown her extreme inclination towards the market of cryptocurrencies in the recent past. Speaking on a CNN podcast, Friedman stated that cryptocurrency is the direction that the modern financial sector should take, and praised it as a highly effective method of payment on a global scale. She stated that:
How it evolves and which of the cryptocurrencies may or may not be the one that ultimately gets embraced, I think that really the jury is still out on that. But I do think the idea of a more globalized payment mechanism that is more efficient than what we have today allows for money to transfer across countries and certainly supports the Internet economy.
Previously, Nasdaq has also expressed its desire to stick to the cryptocurrency world by showing its intent towards developing a cryptocurrency exchange. Once things settle down and a proper regulatory framework is in effect, Nasdaq would very much like to become a digital currency exchange, suggested the CEO of Nasdaq. In an interview with CNBC, she stated that:
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, certainly Nasdaq would consider becoming a crypto exchange, over time.
Regarding the time frame and her belief in this market, she suggested the the cryptocurrency space required to be more mature and regulated before Nasdaq takes such steps.
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.
In the past, Nasdaq has also shown inclination towards the launch of a bitcoin futures oriented product for targeting long-term investments.
All in all, in order to make the market of cryptocurrency more reliable, secure and viable, Nasdaq has been leading the charge, and this meeting was just one of the instance that highlighted it on a bigger scale. While SEC sees the cryptocurrrency world as a playground for illegal activities and fraud, companies like Nasdaq have been working in the background in order to mitigate the notorious image of the cryptocurrency world and highlight all the innovative prospects that it presents.