TLDR
- Nasdaq President Tal Cohen said the SEC’s updated crypto regulation stance allows markets to build again.
- Cohen said firms can now experiment with blockchain infrastructure and tokenized assets with less uncertainty.
- He described the SEC as more proactive and constructive in its engagement with market participants.
- Nasdaq is investing in blockchain systems, tokenization, and artificial intelligence to support always-on trading.
- Cohen said interoperability between traditional and digital systems remains a major industry challenge.
Nasdaq President Tal Cohen said the SEC’s updated stance on digital assets now allows market operators to move forward with development. He spoke at Consensus in Miami Beach and described a more constructive regulatory climate. He said exchanges can now test blockchain systems and tokenized assets with less uncertainty.
SEC’s Crypto Regulation Shift Opens Room to Build
Cohen said the SEC has changed its approach to crypto regulation in recent months. He told attendees that firms now feel they can operate inside a workable framework. He said, “The gray zone four years ago was a no-fly zone,” and he contrasted that with current conditions.
He added, “The gray zone now is we can build, we can gain some scale.” He also said companies can experiment without immediate regulatory resistance. He described the SEC as more proactive and constructive in discussions.
Cohen stated, “The SEC is much more constructive, it’s proactive.” He said regulators now engage earlier with market participants. He explained that this shift supports measured testing of blockchain infrastructure.
Nasdaq Advances Always-On Markets and Tokenization
Cohen said financial markets are moving toward nearly 24-hour trading systems. He explained that operators want faster transfers of money, securities, and collateral. He said Nasdaq supports more than 130 markets with trading technology worldwide.
He said the exchange invests in blockchain systems, tokenization, and artificial intelligence. He described these efforts as part of a transition to always-on infrastructure. He said, “We’re embracing two trends, always on market infrastructure and convergence.”
Cohen said convergence connects traditional financial rails with digital asset systems. He explained that firms do not want separate systems for securities and tokenized assets. He said Nasdaq aims to combine both models within one structure.
He said interoperability remains one of the industry’s main challenges. He stated that operators seek systems that work across asset classes. He said integration allows firms to capture benefits from both environments.
Cohen said tokenization can make assets easier to move and finance. He added that issuers could gain clearer insight into shareholder activity. He said, “What it really does is take an asset and put it in motion.”
He also discussed Nasdaq’s use of artificial intelligence in trading systems. He said the company tests AI tools inside a digital replica of its matching engine. He explained that simulations help the exchange review stress scenarios.
Cohen said AI testing supports extended trading hours. He added that simulations can improve software reliability. He delivered his remarks on Wednesday at Consensus in Miami Beach, Florida.
