Nasdaq is staying away from ICOs

   236

Nasdaq Chief Executive Officer Adena Friedman, speaking at the Financial Markets Quality Conference at Georgetown University, criticized the lack of standards for protecting investors and disclosing information among organizers using the precedent of using the blockchain.

Through ICOs, blockchain-based tokens are sold through public sales to begin developing new networks. But the precedent attracted criticism for the prevalence of fraud, attracting the attention of regulators around the world. It is for that reason, Friedman said, that Nasdaq is staying away.

Friedman's remarks are notable for the fact that Nasdaq has been publicly working with blockchain since 2015 to create new capital markets for startups. The exchange operator has also filed a number of patent applications, which are aimed at applying the technology.

Her comments also come after the top American regulator in the financial markets took a critical stance towards the ICOs.

Earlier this month, SEC President Jay Clayton told the Congressional committee that ICOs are "a ripe area for pump-and-dump," which could adversely affect the adoption of the underlying technology used in this case.

However, he also said that he was cautiously optimistic about the ability of the SEC to monitor and stop fraud cases in the US.