The idea of digital currency going mainstream in the world of finance is gaining traction, according to the CEO of Nasdaq, Adena Friedman. This sentiment was expressed after better-than-expected earnings at the exchange.
More Needs to Be Done
However, the CEO also said that regulation around crypto was still quite light. For Nasdaq to conssider operating a digital currency exchange, this would need to change. The CEO said,
Over time, if it ultimately does morph into a regulated environment, it does give us an opportunity to participate as a marketplace, but I think that is a longer road and it doesn’t have a certain path right now.
The net income for Nasdaq rose in the first quarter to $177 million. This is a rise from $168 million in the previous quarter. The volatility-driven spike in the trading volumes at the exchange helped this increase.
What Nasdaq Is Currently Doing
Right now, Nasdaq is looking into deals with various digital currency exchanges to offer the market infrastructure the technology required for clearing, trading, and surveillance. On Wednesday, the exchange announced that they had entered into a surveillance deal with Gemini Trust Company. This will make it possible to monitor crypto trading on their exchange to prevent fraud and market manipulation.
Friedman on ICOs
While Friedman is optimistic about digital coins, she is not sure about the future of the processing used to raise funds called ICOs. She said that the SEC was right on the issue of ICOs being considered securities. In fact, she felt more needed to be done to regulate them.
The SEC has not been soft on ICOs in 2018. It has been cracking down on those that appear to be fraudulent. In March, it said it was looking forward to implementing securities laws. These laws would not just target ICOs but the entire cryptocurrency economy. These laws would also apply to digital asset storage companies that are called digital wallets. The chair of the SEC Jay Clayton said that they would devote a huge amount of resources to the ICO sector.
The Sudden Spike in Bitcoin
Most of the regulatory actions by the SEC and other agencies were prompted by the over 1300 percent in the value of Bitcoin. With a market cap of billions of dollars, this is something that regulators definitely wanted to regulate. At the time, Bitcoin had reached almost $20,000 in December of 2017. A few months later, it had dropped by almost 48 percent. In recent times, it has appeared to recover, almost hitting the $10,000 mark. However, like most of the crypto world, it is prone to frequent dips and rises in double-digit percentages.
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