Wednesday, May 29, 2024

Nasdaq, the globally recognized securities exchange, with Adena Friedman at the helm as CEO, has declared a temporary halt to its planned cryptocurrency custody services, blaming the stringent regulatory conditions in the United States. The announcement was made during a Q2 earnings call, where Friedman revealed that the intended launch, originally slated for the previous quarter, has now been postponed.

Challenging US ‘Regulatory Landscape’ Forces Nasdaq to Delay Launch of Crypto Custody Service

In the final weeks of March, Nasdaq made public its intention to initiate a custody service for crypto assets. To facilitate this, the firm sought a limited-purpose trust company charter from the New York Department of Financial Services.

The original reports suggested that Nasdaq planned to offer custody services for Bitcoin (BTC) and Ethereum (ETH), with an eye towards incorporating more cryptocurrencies in the future. However, during the recent Q2 earnings call, CEO Adena Friedman announced that the initiative has been temporarily suspended.

“Given the fluctuating business and regulatory scenarios in the United States this quarter, we have decided to pause the initiation of our U.S. digital assets custodian business and our associated attempts to secure the necessary licenses,” the Nasdaq chief stated. She added:

Despite this, we are continuously developing and providing technological solutions that reinforce Nasdaq’s standing as a premier provider of digital assets software solutions to the wider global industry. This includes the advancement of our custody solution as a technology platform designed to serve the extensive, worldwide digital assets market.

In the wake of the U.S. Securities and Exchange Commission (SEC) taking legal action against several cryptocurrency firms on the grounds of alleged securities law infractions, the regulatory scrutiny has grown harsher in the U.S. The U.S. watchdog has classified 66 digital assets, valued at over $98 billion, as securities.

This development led to several companies, including Bakkt, Etoro, and Robinhood, opting to remove some cryptocurrencies from their listings. Nevertheless, a partial victory in a case concerning programmatic sales for Ripple Labs and XRP spurred a number of exchanges to re-list XRP.

The decision of Nasdaq to delay its cryptocurrency custody service launch could potentially have far-reaching implications on the broader digital assets market. How might it shape future regulatory decisions in the U.S.? Feel free to share your perspectives and thoughts on this matter in the comment section below.

Frequently Asked Questions (FAQs) about Nasdaq Crypto Custody Service Halt

Why has Nasdaq decided to halt its crypto custody service launch?

Nasdaq has decided to postpone its crypto custody service launch due to the increasingly stringent regulatory environment in the United States, as expressed by CEO Adena Friedman during a Q2 earnings call.

What was Nasdaq’s initial plan regarding the crypto custody service?

Nasdaq initially intended to offer custody services for Bitcoin (BTC) and Ethereum (ETH), with the aim of eventually extending these services to other cryptocurrencies.

Who is the CEO of Nasdaq who announced this decision?

The CEO of Nasdaq, who announced this decision, is Adena Friedman.

How is the regulatory environment affecting other crypto businesses in the U.S.?

The U.S. Securities and Exchange Commission (SEC) has taken legal action against several cryptocurrency firms for alleged securities law violations. This has led some companies, such as Bakkt, Etoro, and Robinhood, to delist some cryptocurrencies from their offerings.

What is Nasdaq’s stance despite the halt in its crypto custody service?

Despite the halt in its crypto custody service, Nasdaq continues to focus on the development and provision of technology capabilities that position it as a leading digital assets software solutions provider to the broader global industry.

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InvestorInsight July 20, 2023 - 7:14 am

the us regulatory environment is causin lots of disruptions lately, n nasdaq had 2 put their crypto custody plans on hold. its tough out there 4 the crypto industry. this decision might hav a big impact on the market n future regulations. stay tuned!

DigitalNomad33 July 20, 2023 - 8:39 am

nasdaq’s ceo adena friedman decided 2 postpone the launch of their crypto custody service due 2 tough us regulatory conditions. its a smart move 2 assess the changing landscape. lets c how it impacts the broader digital assets market n us regulations goin fwd!

CryptoEnthusiast99 July 20, 2023 - 5:13 pm

wow, so nasdaq has to stop their crypto custody plans because of the us regulatory environment! thts a real bummer. wonder how it’ll affect the rest of the crypto market and future us regulations?


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