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.
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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.
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