MIAMI BEACH, Fla. — Nasdaq President Tal Cohen said changes to the U.S. Securities and Exchange Commission’s (SEC) approach to cryptocurrency regulation give market operators more room to experiment with blockchain-based infrastructure and tokenized assets.
Cohen told the Consensus conference in Miami on Wednesday that the industry now feels like it can “build” again after years of regulatory uncertainty.
“The gray area four years ago was a no-fly zone,” Cohen said. “The gray area now is what we can build. We can scale. We can experiment and maybe not get any opposition.”
Cohen described a broader shift within financial markets toward “always-on” trading systems that operate nearly around the clock and move funds, securities and collateral faster than traditional infrastructure.
Cohen said Nasdaq provides trading technology to more than 130 markets around the world and is investing in blockchain infrastructure, tokenization and artificial intelligence as part of the transformation.
“We are embracing two trends,” he said. “Always-on market infrastructure” and “convergence” between traditional financial rails and digital asset systems.
Cohen said interoperability between these systems remains one of the industry’s biggest hurdles. He said the company does not want to operate separate infrastructure for traditional securities and tokenized assets.
“Whether you’re in the existing world or the digital world, let me tell you, I’m bringing it all together for you so you get the benefits of both,” Cohen said.
He also pointed to regulators taking a more cooperative stance.
“The SEC was more constructive,” Cohen said. “It’s not even open-mindedness. It’s initiative.”
Cohen said tokenization could ultimately make assets easier to move, finance and trade while giving issuers a better understanding of shareholders.
“What it really does is take an asset and put it into operation,” he said.
Nasdaq is also testing artificial intelligence systems designed to simulate trading activity in digital copies of its matching engine. Cohen said the technology could help exchanges test market stress scenarios and improve software reliability as markets move to extend trading hours.