Nasdaq Scraps Crypto Custody Plans Amid US Regulatory Issues

Nasdaq Scraps Crypto Custody Plans Amid US Regulatory Issues
image_print


Share this article

Nasdaq has abandoned its anticipated crypto custody service, a move prompted by the ever-evolving U.S. regulatory climate, according to the firm’s CEO, Adena Friedman.

This strategic decision, which marks a significant setback to the institutional adoption of cryptocurrencies in the U.S., was disclosed in an earnings call on Wednesday:

“This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license.”

Nasdaq had expressed intentions of launching a crypto custody service, a commitment underscored by a push for regulatory approval and the construction of necessary infrastructure. The firm had even sought to acquire a limited-purpose trust company license from the New York Department of Financial Services (NYDFS) to manage the custody business.

However, faced with an uncertain regulatory environment and increased scrutiny of crypto-related services, Nasdaq has chosen to rethink its involvement in this sphere.

bybit

This reversal could potentially set a worrying precedent for the digital asset industry, sparking concerns of a possible migration of crypto firms to jurisdictions more conducive to their operations.

Despite this unexpected retreat, Nasdaq’s support for the digital asset sector isn’t completely going away. Friedman stated that the firm will continue to back the industry, highlighting intentions to seek partnerships with potential ETF issuers:

“We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry.”

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest