The Nasdaq backtracks! His abandonment of custodial service projects for crypto-assets is shaking the industry. Nasdaq CEO Adena Friedman cites regulatory concerns in the surprise announcement. This decision could impact the future of institutional adoption of cryptos in the United States.
A surprising abandonment despite the efforts made
Nasdaq has announced that it is abandoning its plans to provide custodial service for crypto-assets. CEO Adena Friedman told a financial results conference that the decision is driven by current regulatory concerns in the United States. Initially, Nasdaq had planned to launch this service in the second quarter of 2023. However, it has now chosen to discontinue these plans. This, despite efforts to obtain NYDFS approval to establish a limited purpose trust company overseeing custodial activity.
This Nasdaq decision could be a blow to the institutional adoption of cryptos in the United States. As the market waited with hope for the approval of a Bitcoin ETF, the decision to end custody plans raises concerns about a possible migration of companies in the sector to more favorable jurisdictions.
Nasdaq: an uncertain future in the crypto industry
Despite this abandonment, the Nasdaq is not completely withdrawing from the crypto-asset ecosystem. The company plans to support the crypto industry through partnerships with potential ETF issuers, as well as providing technology related to crypto custody. Notably, the Nasdaq is a partner of BlackRock in the Bitcoin ETF’s SEC approval application. This case is currently arousing great interest in the market.
The regulatory environment in the United States has proven to be particularly demanding for companies wishing to offer crypto custody services, following an accounting directive from the SEC. This directive has placed high hurdles on companies wanting to get involved in the custody of their customers’ cryptos. The Nasdaq’s decision to abandon its plans could therefore be seen as a direct consequence of this strict regulation and the resulting uncertainties about the future of the sector in the USA.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
