Why It Matters

Nasdaq Inc. is positioning itself aggressively for the next decade as Congress rewrites the rules for digital assets, AI in finance, and market structure. The exchange operator’s future depends on favorable outcomes across three critical areas: establishing legitimacy in cryptocurrency trading through bills like the CLARITY Act and FIT21, deploying AI tools via regulatory sandboxes in the Unleashing AI Innovation in Financial Services Act, and revitalizing IPO markets through capital formation reforms.

Meanwhile, Nasdaq is defending against threats including proposed financial transaction taxes and aggressive SEC rules on market data pricing. The company’s $700,000 quarterly lobbying investment reflects how critical these regulatory outcomes are to its bottom line.

By the Numbers

Nasdaq spent $700,000 in the last quarter on lobbying, deployed entirely through its seasoned in-house team. The company has maintained continuous advocacy since August 2003, accumulating over $45 million in total expenditures.

The three-person team includes Terry G. Campbell II, representing Nasdaq since 2003 across 78 disclosures totaling over $31 million, and Jameel William Aalim-Johnson, who brings high-level congressional experience as former D.C. Chief of Staff to Rep. Gregory Meeks (D-NY) and has handled 63 filings worth $25 million since 2008. Laura Anne Nolan rounds out the team with bipartisan House experience.

While relying primarily on in-house advocacy, Nasdaq maintains relationships with external firms including Porterfield, Fettig & Sears LLC ($4.45 million) and Public Strategies Washington Inc. ($4.45 million) for specialized work.

The Agenda

Nasdaq is pushing for AI regulation that encourages innovation, digital asset frameworks like the CLARITY Act and FIT21, and capital formation reforms through the Improving Disclosure for Investors Act. The company is also advocating for proxy advisor transparency standards, opposing financial transaction taxes, and engaging with the SEC on market structure rules including Regulation NMS and market data pricing.

Additional priorities include Self-Regulatory Organization reforms and promoting anti-financial crime technology solutions—reflecting Nasdaq’s long-term focus areas rather than strategic shifts.

Broader Context

Congress is actively reshaping financial regulation, creating opportunities and risks for Nasdaq. The Digital Asset Market Clarity Act has advanced through Congress, establishing SEC-CFTC jurisdiction divisions for cryptocurrency trading. The Unleashing AI Innovation in Financial Services Act signals congressional appetite for regulatory sandboxes benefiting tech-focused market infrastructure providers.

However, SEC market structure reforms—including fee caps and pricing increments—directly threaten exchange operations and data revenue streams central to Nasdaq’s profitability. Proxy advisor oversight is shifting under new political leadership, while proposals like the Tax on Wall Street Speculation Act pose ongoing threats to trading volumes.

Between The Lines

Congressional momentum aligns with Nasdaq’s priorities across multiple fronts. The Digital Asset Market Clarity Act is moving through committee with bipartisan support, while related bills on stablecoin regulation advance. House, Senate Agriculture, and Senate Finance committees have held hearings on these issues.

The bipartisan Unleashing AI Innovation in Financial Services Act would create regulatory sandboxes for AI testing, while capital formation bills including the Middle Market IPO Cost Act represent ongoing efforts to reduce public offering barriers.

Competitive Landscape

Nasdaq operates in a crowded advocacy environment where other exchange operators like NYSE and Cboe compete on market structure issues. Major financial institutions including Goldman Sachs and JPMorgan lobby heavily on capital formation and digital assets, while crypto firms like Coinbase engage directly on digital asset policy.

Industry trade associations—SIFMA, the U.S. Chamber of Commerce, and the Investment Company Institute—represent collective interests across these debates. Nasdaq’s substantial investment in its experienced lobbying team, particularly Aalim-Johnson’s prior role with House Financial Services Committee leadership, provides crucial Democratic access in this competitive landscape.

The Bottom Line

Nasdaq’s $700,000 last quarter investment in lobbying reflects the critical importance of federal regulation to its exchange business. With Congress actively advancing digital asset frameworks and AI regulatory sandboxes, the company’s tech-focused advocacy priorities align with emerging legislative momentum. The sustained investment in experienced in-house talent positions Nasdaq to capitalize on regulatory opportunities while defending against threats to its core revenue streams.

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