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Regulatory Challenges Force Nasdaq to Pause Crypto Custody Business Ambitions

2 mins
Updated by Geraint Price
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In Brief

  • The Nasdaq has paused its plans to establish a crypto custody business due to regulatory challenges in the US.
  • Despite the pause, Nasdaq says it remains committed to supporting the evolution of the digital asset ecosystem
  • The SEC has received industry wide criticism due to the crackdown on the crypto industry.
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The US crypto crackdown continues to halt innovation as Nasdaq pauses its plan to launch a crypto custody business.

The US has been aggressively cracking down on the crypto industry this year, creating a regulatory challenge for businesses in the country.

Nasdaq Will Focus on Tech Instead

According to Bloomberg, Nasdaq will halt its plan to establish a crypto custody business due to the regulatory environment in the US. It will also no longer seek approval from the New York Department of Financial Services.

Rather, the exchange operator wants to continue focusing on crypto’s technological aspect. CEO Adena Friedman said in a second-quarters earning call:

“We remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways.”

In March, BeInCrypto reported that Nasdaq planned to launch crypto custody services by the second quarter. In September 2022, the exchange announced its plan to launch a digital assets group and initially begin with a crypto custody service to cater to institutional investors.

Are you curious about artificial intelligence cryptocurrencies? Read our guide here.

Crypto Regulatory Challenges in the US 

The US has been clamping down on crypto businesses, especially crypto exchanges, with the Securities and Exchange Commission (SEC) suing two of the largest exchanges, Binance and Coinbase, in June.

The SEC also declared over 67 different cryptocurrencies as securities in these lawsuits.

The country has continued its crypto crackdown despite receiving criticism from industry stakeholders. Earlier this month, Gemini co-founder Cameron Winklevoss called the SEC “a failed regulator.”

The professor of crypto finance who succeeded Gary Gensler at the Massachusetts Institute of Technology (MIT) exclusively told BeInCrypto that the United States is making unique mistakes regarding the crypto industry.

Got something to say about Nasdaq crypto custody or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto platforms in the US | March 2024

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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