According to a CNBC report, Nasdaq CEO Adena Friedman stated that the exchange would consider becoming a platform for trading cryptocurrencies like Bitcoin once the crypto market reaches sufficient maturity.
Nasdaq's Strategic Position on Crypto
During an interview with CNBC's Squawk Box, Friedman remarked:
"Certainly Nasdaq would consider becoming a crypto exchange over time.
If we determine the timing is right and investors are prepared for a more regulated market—one ensuring fairness—we’d move forward."
Key Challenges: Regulation and Market Readiness
Friedman identified regulatory clarity as the primary hurdle for institutional adoption. She emphasized:
"Before launching a crypto exchange, we need resolved regulations to ensure compliance and investor protection."
Despite these challenges, Friedman expressed long-term optimism:
"Digital currencies are here to stay. The question is how long maturation will take."
Gemini Partnership: A Stepping Stone
Nasdaq has taken incremental steps toward crypto integration. In 2018, it partnered with Gemini, the Winklevoss-led exchange, to provide market surveillance technology.
Tyler Winklevoss noted:
"This collaboration ensures Gemini operates as a rules-based, fair-trading platform."
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Regulatory Scrutiny on ICOs
Friedman criticized the lack of oversight in initial coin offerings (ICOs):
"ICOs must be regulated. The SEC is correct to classify many tokens as securities."
In 2018, the SEC cracked down on fraudulent ICOs and explored applying securities laws to crypto exchanges and wallet providers.
Bitcoin's Volatility and Market Recovery
- 2017 Surge: Bitcoin prices rose 1,300%, peaking near $20,000.
- 2018 Q1 Decline: Prices dropped 48%—the worst quarterly performance on record.
- Recovery: By mid-2018, Bitcoin rebounded to $9,700, gaining 20% weekly.
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FAQ
Q: When will Nasdaq launch its crypto exchange?
A: No confirmed timeline. Nasdaq awaits market maturity and regulatory clarity.
Q: What’s Nasdaq’s current role in crypto?
A: Providing tech support (e.g., Gemini’s surveillance systems) while evaluating full exchange adoption.
Q: Why is regulation critical for crypto exchanges?
A: To prevent fraud, ensure market fairness, and attract institutional investors.