New York-based Nasdaq Inventory Alternate has determined to delay the launch of its crypto custody service as a result of unsure regulatory surroundings within the US.
Nasdaq CEO Adena Friedman mentioned throughout the firm’s quarterly earnings name on July 19, 2023:
“In mild of the altering enterprise and regulatory surroundings within the US, we have now made the choice to pause our launch of the US digital asset custodian enterprise.”
In keeping with Friedman, the alternate is dedicated to the digital asset trade, however is not going to pursue related working licenses till there may be extra readability. He added that Nasdaq will proceed to develop options for the trade within the meantime.
Friedman additionally clarified that the choice to delay the launch of the custody service isn’t associated to the continued course of for the Spot Bitcoin exchange-traded fund, which will likely be backed by the alternate.
“We’re dedicated to supporting the event of the digital asset ecosystem in quite a lot of methods, amongst them our ongoing engagement with regulators, supply of complete know-how options throughout the buying and selling lifecycle, and collaboration with potential ETF issuers to help the tradable alternate. By way of our partnership with listed merchandise.”
Nasdaq is performing as a accomplice for BlackRock’s Spot Bitcoin ETF.
change in regulatory surroundings
The alternate first introduced plans for a digital asset custody enterprise in November 2022, with plans to launch the service by the tip of the second quarter earlier than deciding to delay the launch to March 2023.
Nevertheless, within the weeks since then the US regulatory panorama has worsened and turn out to be extra sophisticated to navigate because the SEC has elevated enforcement towards the crypto trade with authorized complaints towards Coinbase and Binance.US.
The SEC has taken a tough stance that the majority cryptocurrencies are securities and is utilizing this as a key facet of its enforcement technique. Nevertheless, this situation has not but been finalized by the lawmakers which has turn out to be the central drawback in lots of authorized instances with crypto companies.
Many cryptocurrency firms have determined to focus progress exterior the US till lawmakers and regulators set up extra certainty for the trade.
In the meantime, there may be some optimism for the trade within the US, as Congress prepares to vote on crypto-related laws this week. This outcome could possibly be an essential step in clarifying the regulatory panorama for the trade.
The publish Nasdaq Suspends Crypto Custody Plan Citing ‘Altering Enterprise and Regulatory Surroundings’ appeared first on CryptoSlate.