Nasdaq Halts Crypto Custody Plans Amid Tough US Regulatory Environment

Adena Friedman, CEO of Nasdaq, the planetary securities marketplace, announced that the steadfast is postponing its cryptocurrency custody plans owed to the United States’ “regulatory environment.” During a Q2 net call, Friedman disclosed that Nasdaq aimed to motorboat the work past quarter, but it has been enactment connected hold.

U.S. ‘Regulatory Environment’ Forces Nasdaq to Postpone Crypto Custody Launch

In precocious March, Nasdaq unveiled its plans to present a crypto plus custody service. The institution applied for a limited-purpose spot institution charter from the New York Department of Financial Services.

Initially, it was reported that Nasdaq would supply custody for bitcoin (BTC) and ethereum (ETH), with plans to grow to further cryptocurrencies. However, during a Q2 net call, CEO Adena Friedman stated that the task had been paused.

“This quarter, considering the shifting concern and regulatory situation successful the United States, we person made the determination to halt our motorboat of the U.S. integer assets custodian concern and our related efforts to prosecute applicable license,” said the Nasdaq executive. Friedman elaborated:

We proceed to physique and present exertion capabilities that presumption Nasdaq arsenic a starring integer assets bundle solutions supplier to the broader planetary industry. This includes advancing our custody solution arsenic a exertion level to service the broader, planetary integer assets marketplace.

Since the U.S. Securities and Exchange Commission (SEC) took enactment against aggregate crypto companies for alleged securities instrumentality violations, regulatory unit has intensified successful the U.S. The U.S. regulator has categorized 66 integer assets worthy implicit $98 billion arsenic securities.

This prompted respective businesses specified arsenic Bakkt, Etoro, and Robinhood to delist immoderate cryptocurrencies. However, aft Ripple Labs and XRP secured a partial victory regarding programmatic sales, galore exchanges opted to re-list XRP.

What interaction bash you deliberation Nasdaq’s determination to halt its cryptocurrency custody work mightiness person connected the broader integer assets market, and however could it power aboriginal regulatory decisions successful the U.S.? Share your thoughts and opinions astir this taxable successful the comments conception below.