Nasdaq cancels crypto holding plans amid US regulatory issues
Share this article
The company's CEO, Adena Friedman, said Nasdaq has abandoned its protected cryptostody service, a move prompted by the growing regulatory environment in the US.
This strategic decision, which marks a significant decline in the institutional acceptance of cryptocurrencies in the US, was revealed in an earnings call on Wednesday:
“Given the changing business and regulatory environment in the United States this quarter, we have decided to discontinue our efforts to acquire the US Digital Asset Custodian business and related license.”
Nasdaq has expressed interest in launching a certified crypto custody service amid pressure to gain regulatory approval and build the necessary infrastructure. The company sought to obtain a limited purpose trust company license from the New York Department of Financial Services (NYDFS) to manage its securities business.
However, in the face of an uncertain regulatory environment and scrutiny of crypto-related services, Nasdaq has chosen to rethink its involvement in this sphere.
This reversal could set a worrisome precedent for the digital asset industry, risking a shift of power to crypto companies that are more beneficial to their operations.
Therefore, Nasdaq, which has been subject to every type of regulation imaginable, does not feel confident that it will have the regulatory clarity to operate a *CUSTODY* service in the US.
This tells you what a joke US regulatory transparency has been and its chilling effects.
— Adam Cochran (@adamscochran.eth) (@adamscochran) July 19, 2023
Despite this unexpected retreat, Nasdaq's support for the digital asset sector will not disappear completely. Friedman said the company will continue to support the industry, noting its interest in partnering with potential ETF issuers:
“We will continue to build and deliver the technology capabilities that position Nasdaq as the leading digital assets software solutions provider to the broader global industry.”
Share this article
The information on or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of any information on or accessible from this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide 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 be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
