Andrew Cuomo: Wall Street is ready. Congress needs to catch up

In the wire report, Andrew Cuomo expressed that Wall Street is prepared for blockchain technology, while Congress needs to catch up. The story recounts the history of technological advancements in the financial sector, starting from paper-based trading in the late 1800s to electronic trading in the 1960s, and the formation of Nasdaq in 1971. However, the traditional Wall Street establishment resisted these changes due to skepticism and opposition.

The Securities and Exchange Commission (SEC) played a crucial role in embracing electronic trading through regulations that increased transparency and facilitated competition from electronic communication networks (ECNs) in 1996. As blockchain technology emerged, it posed a similar disruptive challenge to the Wall Street establishment, prompting criticism and forcing regulators to adapt.

New York was among the first states to license blockchain companies, recognizing the potential of cryptography and blockchain technology to streamline the financial system. The SEC recently established an innovation exemption to facilitate the trading of certain U.S. stocks using blockchain technology, and ICE, the parent company of the New York Stock Exchange, has formed a joint venture with OKX, a blockchain company, to operate a securities venue under this framework.

The report emphasizes that the adoption of blockchain technology offers faster settlement, a more direct connection between issuers and investors, greater transparency, and the potential for a 24/7 global marketplace. This evolution in financial technology is inevitable, and the financial establishment will either incorporate these new technologies or risk being overtaken by competitors.

Congress must now address the CLARITY Act and develop a durable regulatory framework for digital assets, setting aside political differences to focus on the economic benefits of this progressive change.