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  • Writer's pictureBrandon Zemp

TXSE Stock Exchange a Crypto-friendly Challenger?

TXSE Stock Exchange a Crypto-friendly Challenger?

As the United States experiences a political and cultural divide between "red states" and "blue states," it seems fitting that stock exchanges would follow suit. Speculation had been ongoing for months about the emergence of a new "anti-woke" stock exchange in Texas, as reported by The Wall Street Journal, and these rumors have now become a reality.

On June 5, TXSE Group revealed its intention to establish the Texas Stock Exchange (TXSE) with its headquarters in Dallas. Notably, the initiative has secured $120 million in funding from BlackRock and Citadel Securities, among other investors.

Being a bold move, it quickly sparked numerous inquiries. Was the New York Stock Exchange (NYSE) and Nasdaq, the two largest stock exchanges in the world by market capitalization, truly ready for a change? Was this advancement genuinely a reflection of a "changing corporate environment" towards states with more advantageous regulatory and taxation frameworks, as proposed by the WSJ?

Initially, TXSE aims to draw in companies in need of capital from the southeastern region of the U.S., encompassing states such as Texas, Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, and Tennessee. However, is there a genuine necessity for startups in this area to have their own stock exchange? Moreover, what implications does this have for the growing blockchain and cryptocurrency sector? Isn't it positive news to have a new stock exchange tailored for the emerging crypto industry?

Tabb suggested that by supporting a Texas exchange, the world's largest asset manager could enhance its reputation in Texas. In contrast, Citadel CEO Ken Griffin, who relocated Citadel headquarters from blue-state Illinois to red-state Florida two years ago, has shown support for the Republican Party.

Nevertheless, a stock exchange located in Texas will still need approval from the U.S. Securities and Exchange Commission (SEC). Tabb pointed out that regardless of the exchange's location, if the SEC does not approve of cryptocurrency, it will not make a difference, especially in terms of listing crypto assets.

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