NYSE Mulls Crypto Trading Amid Improving US Regulatory Clarity
The NYSE hails the positive legislative developments in crypto as it considers crypto trading as the US regulatory becomes clearer.
The NYSE president Lynn Martin admitted interest in crypto trading in a discussion on crypto regulations with crypto exchange Bullish chief executive Tom Farley during the Consensus 2024.
Martin acknowledged the stride realized by the US at the Austin – Texas event, singling out changing politics and barriers hindering the pursuit of opportunities in blockchain technology improving the traditional markets.
NYSE Consider Crypto Trading
The New York Stock Exchange (NYSE) president confessed openness to offer crypto trading, though decrying the biggest obstacle was the absence of regulatory guidance.
Former NYSE president Tom Farley is optimistic that improvement in the regulatory environment is imminent regardless of the November 4 election outcome. The Bullish chief echoed Martin’s view that the absence of regulatory clarity hindered institutions from embracing crypto.
Martin disclosed that the NYSE mulls expanding to crypto trading if the regulatory status of such an addition is clearer for the stock market giant.
During the Wednesday, May 29 panel discussion, the NYSE president revealed that clear regulatory guidance would make crypto trading a desired opportunity for the company.
She added that the US-listed spot Bitcoin exchange-traded funds (ETFs) had amassed assets valued at $58 billion, signaling accelerated demand for the regulated crypto products in the US.
Farley noted that the traditional financial (TradFi) sector increasingly intertwines with digital assets. The integration has seen more TradFi heavyweights offer crypto products despite regulatory clarity, which is becoming burdensome and slowing innovation.
Regulatory Clarity Necessary for TradFi Offering Crypto Trading
Martin indicated that the $58 billion worth of assets accumulated by the spot Bitcoin ETFs barely six months since their approval is indicative that the market desires regulation within the traditional structures.
Martin views that perhaps the US Securities and Exchange Commission (SEC) witnessed the historic inflows to conclude that the approval makes sense as the bitcoin ETFs attained tremendous success. Such explains the stunning 180-turn to approve 9b-4s from eight applicants for spot Ether ETFs on May 23.
The Martin-led NYSE is considering expanding into crypto trading, a niche its US-based rival, Chicago Mercantile Exchange (CME), is pursuing. CME is a huge player in regulated crypto futures trading and plans to unveil spot crypto trading, as disclosed in a Financial Times publication earlier this month.
Farley highlighted during the Consensus session that the US has witnessed a sudden change of heart by legislators, regulatory agencies, and politicians. He singles out the ouster of the Federal Deposit Insurance Corp (FDIC) chair considered anti-crypto and the House passing the Financial Innovation and Technology for the 21st Century Act (FIT21).
Farlyer recounts that the Republican presidential candidate Donald Trump has recently doubled down to support crypto and announced a move to create a crypto army as a notable development.
Farley indicates that five years of crypto evolution occurred suddenly and is optimistic that the US will make meaningful regulatory-backed progress in digital assets. The crypto exchange Bullish chief considers the US likely to match Europe and Hong Kong in regulatory clarity, which is desired for a reasonable crypto industry.
Regulators to Push TradFi into Private Blockchains
Farley predicts sustained progress extending to 2025 regardless of whether Trump or Biden becomes president. The NYSE president echoed the statement, expressing optimism that blockchain technology will soon make the financial process efficient and transparent, particularly the less liquid assets like the municipal issued bonds.
Farley indicated that traditional and real-world assets will not suddenly migrate to the digital asset rails. He indicated that regulators and key stakeholders are concerned about the distrust towards the blockchain infrastructure.
Farley lamented that the power-hungry parties within the regulators desire to exercise control over everything. Given its decentralized nature, the Bullish chief questioned how one would exercise control over the Solana ecosystem.
The Bullish CEO predicted regulators would likely compel the TradFi firms to develop private blockchains rather than utilize the existing blockchains.
Editorial credit: Javen / Shutterstock.com
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