There are numerous service providers competing to meet the needs of retail investors, making the retail sector of the cryptocurrency industry fairly saturated at the moment.
Tal Cohen, executive vice president of Nasdaq, the American stock exchange, says the company has no immediate intentions to start a cryptocurrency exchange until authorities have provided clearer legislative certainty.
Cohen claimed in an interview with Bloomberg that there are enough cryptocurrency exchanges serving the needs of retail investors and that the retail side of the cryptocurrency business is largely saturated. He further stated that his company would maintain its September 20-launched focus on cryptocurrency custody services.
Cohen also provided information about other cryptocurrency-related services that the exchange is developing, such as constructing execution capabilities for moving and transferring assets on the platform.
The second-largest stock exchange in the world might be reluctant to start a cryptocurrency exchange in the US, but the company teamed up with Brazil’s top brokerage service provider, XP, to start a cryptocurrency exchange last year.
The cryptocurrency market has experienced another price cycle as expected, but American politicians have not yet presented a clear plan for bringing crypto markets under the legal umbrella.
Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, has been very vocal about the weaknesses that the developing market has. However, despite frequent requests from Congress for clearer regulations, the United States hasn’t made much progress in this area.
The SEC strengthened its crypto enforcement division early this year and kept up its enforcement operations against cryptocurrency firms. Senator Bill Hagerty, a member of the Senate Banking Committee, filed legislation seeking a safe harbor for cryptocurrency exchanges from “certain” SEC enforcement actions as a result of expanding enforcement activities despite a lack of regulatory certainty.
Nasdaq and other well-known companies are unable to enter the market due to a lack of regulations, but even currently operating crypto platforms in the country have occasionally suffered as a result of enforcement actions and fines.