'Nasdaq Would Consider Becoming a Crypto Exchange', Says CEO

  • Nasdaq CEO says that Nasdaq will consider becoming a crypto exchange once the regulatory framework becomes more clear.
  • Nasdaq is already working with the Gemini crypto exchange to help it with detection of fraudulent trading activity.

In an interview on CNBC yesterday, Adena Friedman, the President and CEO of the world's second-largest exchange (by market capitalization), revealed that "Nasdaq would consider becoming a crypto exchange over time."

Although she stressed that a clear regulatory framework would need to be put in place first, she generally presented a bullish stance on cryptocurrencies:

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.

Adena Friedman, Nasdaq CEO

This news came on the same day that Gemini Trust -- the digital asset exchange started by the Winklevoss twins in 2015 -- and Nasdaq made the announcement in a press release that Gemini was going to use Nasdaq's market surveillance service for monitoring bitcoin and ether trading as well as the auction process Gemini uses for determining the settlement  price for Bitcoin futures:

Gemini Trust Company, LLC (Gemini) and Nasdaq Inc. (Nasdaq:NDAQ) announced today that Gemini will be leveraging Nasdaq's SMARTS Market Surveillance technology to monitor its marketplace. The technology, which is considered the most widely deployed surveillance system in the world, will enable Gemini to monitor across all of its trading pairs, including: BTC/USD, ETH/USD and BTC/ETH. Further, SMARTS will also surveil activity across the Gemini auction process that is used to determine the settlement price for the Bitcoin XBT futures contracts that trade on Cboe's CFE Exchange.


Friedman then presented her thoughts on ICOs: "ICOs need to be regulated... The SEC is right that those are securities and need to be regulated as such." We must remember that Jay Clayton, chairman of the U.S. Securities and Exchange Commission (SEC), had this to say about ICOs on 6 February 2018 in a Senate hearing on cryptocurrencies:

And I'm very unhappy that people are conducting ICOs like public offerings of stock when they should know that they should be following the private placement rules unless they're registering with us.

Jay Clayton, SEC Chairman

As for blockchain technology in general, Friedman is on the record as saying that the blockchain is "a foundational technology that we see as really having the great promise to create a lot more efficiency in global trade." Over the past few months, Nasdaq has been working with several firms offering blockchain-based exchange-traded funds (ETFs). On 17 January 2018, the first two such ETFs were launched on Nasdaq. These were the Amplify Transformational Data Sharing ETF (BLOK) from Amplify ETFs and Reality Shares Nasdaq NextGen Economy ETF (BLCN) from Reality Shares

And finally, it is worth noting that Nasdaq is currently exploring the idea of launching a Bitcoin futures contract to compete with Cboe Global Markets and CME Group, which introduced Bitcoin futures trading last year. On 23 January 2018, while discussing bitcoin at the World Economic Forum in Davos, Switzerland, the Nasdaq CEO, in an interview with Maria Bartiromo on FOX Business, made the following comments:

We are in the mode of exploring that... We want to make sure that if we choose to enter the market in terms of providing a future in the market that... we have client demand... and that we put the right management protocols in place to make it so that people feel confidence in what we are providing, and how that becomes an investable product.

Adena Friedman, Nasdaq CEO


Max Keiser: Bitcoin Dominates Altcoins in Cryptocurrency Debate

  • Keiser Report host Max Keiser claims that bitcoin continues to dominate altcoins and provide more investor security.
  • Keiser predicted bitcoin's market dominance and hash rate to reach 99 percent within the next five years. 

Max Keiser, host of the Keiser Report, claims that bitcoin has no cryptocurrency rivals and that most altcoins fail to live up to the standard set by BTC. 

Speaking in an appearance on London Real, Keiser dismissed the possibility of a new crypto-asset emerging and eating into bitcoin’s market dominance. 

He said, 

There’s no coin out there that can do what Bitcoin doesn’t do already or will be able to do shortly. What you’re buying with Bitcoin is security.

Keiser continued, arguing that hard forks of bitcoin such as bitcoin cash and SV lack security compared to the original BTC.

The avid bitcoin supporter also referred to several altcoins as being “pure exit scams,” intentionally designed to manipulate investors. 

He explained, 

They have huge ‘pre-mines’ that the founders are selling or dumping and making a lot of money. A lot of people are losing money, and they have no use case. So like a Ripple or an Ether, even, is an exit scam. It’s to be avoided. Those are the top coins.

Keiser predicted that bitcoin’s market share and hash power, sitting at 65% and 85% respectively, will continue to rise relative to the market. He claimed that within five years bitcoin will account for 99% of all cryptocurrency hashing power and market capitalization. 

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