Will the US "Directly" Offer Bitcoin Spot Trading? NYSE President Signals Major Move

Lynn Martin, President of the New York Stock Exchange (NYSE), stated at the 2024 Consensus Conference that if the regulatory landscape becomes clearer, the NYSE will consider Bitcoin and cryptocurrency spot trading. Tom Farley, former NYSE President and current CEO of Bullish, predicts that regardless of the outcome of the November elections, the US regulatory environment will improve in the coming years.

On Wednesday (May 29), during a panel discussion at the 2024 Consensus Conference in Austin, Texas, Martin delivered a clear message: "If the US provides clear regulatory guidance, this will be an opportunity worth watching."

She added that the Bitcoin spot ETFs listed in the US have accumulated $58 billion in assets, which is a "strong signal" indicating demand for regulated crypto products.

Martin and Farley discussed this critical issue, noting that despite the increasing convergence between traditional financial markets and digital assets, and the growing number of traditional financial giants offering crypto products, regulatory uncertainty continues to stifle industry innovation.

Martin continued: "The fact that approximately $58 billion has flowed into Bitcoin spot ETFs strongly indicates that the market is seeking regulation of traditional structures. Therefore, hopefully, the SEC will see these capital inflows and say, ‘Hey, this makes sense,’ because Bitcoin ETFs have been hugely successful."

According to a Financial Times report earlier this month, the NYSE's competitor in the US, regulated cryptocurrency futures trading giant CME, is planning to offer cryptocurrency spot trading to its customers.

Farley highlighted the sudden shift in the US political stance towards cryptocurrencies, including the resignation of the anti-crypto chairman of the Federal Deposit Insurance Corporation (FDIC), the House of Representatives passing the Financial Innovation and Technology Act of the 21st Century (FIT21), and Republican presidential candidate Donald Trump doubling down on his support for cryptocurrencies in a series of events.

"Five years of evolution happened in five minutes," he said. "I'm very optimistic about what it means for this country. I think, just like in Europe and Hong Kong, regulators will draft regulations saying, ‘Hey, what does your reasonable digital asset industry look like?’"

He also mentioned: "Whether Trump, Biden, or Michelle Obama is elected president, you will see progress in 2024 and 2025."

Martin stated that she remains optimistic about using blockchain technology to make financial processes more efficient and transparent, particularly for less liquid assets like municipal bonds.

However, Farley noted that given regulators' mistrust of public blockchain pipelines, traditional real-world assets would not migrate to digital asset tracks on a large scale. "Regulators want to stick their power-hungry, sticky little fingers into everything," he said.

"How do you touch Solana? How do you touch decentralized things?"

He concluded: "Therefore, regulators might push traditional financial (TradFi) companies to develop private blockchains rather than using existing blockchains for settlement."