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Nasdaq Delays Crypto Custody Until Regulatory Concerns Are Over

Alternate operator Nasdaq stated right now it’s placing its plans to launch a digital asset custodian service on maintain, citing the present regulatory surroundings within the states.

However throughout its second-quarter earnings name on Wednesday, Nasdaq CEO Adena Friedman stated the corporate “stays dedicated to supporting the expansion of the digital asset ecosystem.”

Final yr, information broke that Nasdaq was planning to launch its personal crypto custody service to garner the curiosity of institutional buyers. However this yr, US regulators launched the harshest crackdown ever on the business – suing a number of main crypto manufacturers.

“This quarter, in mild of the altering enterprise and regulatory surroundings within the US, we’ve got determined to pause our respective efforts to pursue the launch of the US digital asset custodian enterprise and related licenses,” Friedman stated.

He added that the corporate will proceed to accomplice with regulators and exchange-traded fund issuers to subject crypto merchandise.

The US is turning into a tough place to do enterprise for the crypto business.

Gary Gensler, chairman of the US Securities and Alternate Fee, Wall Road’s prime regulator, has cracked down on crypto exchanges, primarily as a result of he alleges they’re promoting unregistered securities.

Gensler even stated regarding the business: “We do not want extra digital currencies.”

Regardless of this, nonetheless, there seems to be institutional curiosity within the sector: BlackRock—and a number of other different main asset managers—have utilized for a spot bitcoin ETF product.

Nasdaq teamed up with BlackRock for the appliance, which is at present underneath overview by the SEC.

And a brand new crypto alternate for big-money buyers, EDX Markets, was launched final month. It’s backed by main Wall Road companies Charles Schwab, Citadel Securities and Constancy Digital Belongings.

Bitcoin, the biggest digital asset by market cap, is priced at $29,839 right now, up 80% for the reason that starting of the yr, when it was buying and selling for lower than $17,000 per coin.

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