Nasdaq Pauses Crypto Custody Launch Due to Regulatory Issues
- Nasdaq has suspended the launch of its cryptocurrency custody solution, as per CEO Adena Friedman.
- The executive said that it has taken the decision due to regulatory issues regarding crypto in the US.
- The crypto custody solution from Nasdaq was supposed to debut in Q2 of this year.
- Nasdaq remains committed to crypto and will watch regulatory developments very closely.
The New York-based American stock exchange, Nasdaq, has stated it will pause the launch of crypto custody in the United States due to regulatory reasons. It was previously planned that the crypto custody solution would be rolled out by the end of the second quarter of 2023, but the launch has been suspended owing to the recent actions taken by the United States Securities and Exchange Commission (SEC) against crypto firms and their operations.
During an announcement made at the Q2 results shareholder call, Nasdaq said it will wait for regulatory clarity before engaging in crypto custody services. The CEO of the firm, Adena Friedman, said that “this quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the US digital asset custodian business and our related efforts to pursue relevant licenses.”
However, the Nasdaq executive confirmed that his firm remains committed to the digital asset sectors and will watch the developments very closely.
“We continue to build and deliver technology capabilities that position Nasdaq as a leading digital asset software solutions provider to the broader global industry. This includes advancing our custody solution as a technology platform to serve the broader, global digital asset marketplace,” said Friedman.
The initial launch of the Nasdaq crypto custody solution took place in September 2022, and there were plans to launch an official division for customers allowing them to store the top two cryptocurrencies, Bitcoin (BTC) and Ether (ETH). However, the plans have now changed due to the regulatory regime in the United States.
As earlier reported by BitcoinWisdom, US lawmaker Ritchie Torres urged Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), to reassess the agency’s stance on cryptocurrencies after its partial loss against Ripple last week. He asked Gensler to restrict its prosecution to “bonafide bad actors” rather than randomly classifying all kinds of crypto assets as securities.
Interestingly, Ripple secured a partial win against the SEC in the XRP case, as the judge presiding over the case ruled that XRP is not a security when sold to retail customers. However, it can be considered a security when institutional buyers are involved.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
