The giant stock exchange, Nasdaq Inc, this week held a meeting with a group of cryptocurrency companies and traditional exchanges to discuss the crypto future. And the Chicago meeting was called with perfect timing.
It occurred just as a number of crypto companies are grappling with the SEC for the establishment of ETFs. It was also held only a couple of days before the Winkelvoss brothers, who founded Gemini, were about to face the SEC’s with their revised ETF proposal and face a second negative response.
According to Bloomberg Gemini was part of the group in Chicago, and Nasdaq, the world’s second largest Stock Exchange in terms of market capitalization after the New York Stock Exchange, confirmed the meeting. But no-one is prepared to say much more than that.
Meeting Encourages Crypto to Step up Its Game
Apparently it was all about motivating the crypto industry to improve its image. And this was necessary to backup the role it had potential to play in the global market. As is to be expected, most of it revolved around regulation, and the tools and surveillance required for it.
A few days later, the SEC cited same reasons for turning down the Winkelvozz submission. It said the main reasons for opposing the necessary rule change were that blockchain and cryptocurrency are open to market manipulation, fraud, and issues regarding investor protection. And it didn’t feel the arguments the Gemini application put forward were convincing enough in this regard.
Nasdaq Calls For Regulation In Crypto Future
Nasdaq has already been working with some of the crypto exchanges. And it announced this week that it was supplying five of them with technology, including Gemini. This therefore seems to indicate that the Chicago meeting was not the first one with crypto businesses, and that it won’t be the last. And chances are most will address the same issues, such as fraud, theft and the absence of custody services. These affect its liquidity, and slow the entry of Wall Street into its space.