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Nasdaq Halts Plan To Launch Crypto-Custodian Business in US 13

Nasdaq became the latest mainstream financial firm to take a step back from digital assets, aborting its launch of a custodian business in the US due to the shifting business and regulatory environment. From a report: The exchange operator is also halting its efforts to pursue a license related to the business but will continue to build out its technology to handle crypto for clients. "We remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways," including partnerships with potential ETF issuers, Adena Friedman, Nasdaq's chief executive officer, said on the second-quarter earnings call on Wednesday.

Nasdaq pulled back amid a widening crackdown by regulators that aims to isolate crypto's risks from the US financial system. Banks have been warned about their exposure to crypto businesses, and the US Securities and Exchange Commission has filed a series of lawsuits against some of the industry's biggest firms, including Binance and Coinbase Global. Among the concerns are risks that could topple a federally insured bank, as well as the failure of some crypto platforms to separate different parts of their businesses, such as custody, market-making and trading, which could result in conflicts of interests.
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Nasdaq Halts Plan To Launch Crypto-Custodian Business in US

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  • by Kokuyo ( 549451 ) on Wednesday July 19, 2023 @11:07AM (#63699162) Journal

    That sounds like somebody I used to know.

  • Rule 1 of Crypto (Score:3, Insightful)

    by Baron_Yam ( 643147 ) on Wednesday July 19, 2023 @11:44AM (#63699276)

    If it has the word 'crypto' in it, it's almost certainly a scam, or a meta-business looking to take advantage of people who fall for the scam.

    That's really all the average person needs to know now.

    • Re: (Score:1, Troll)

      Still, less of a scam than the "federal reserve"

  • by BigFire ( 13822 ) on Wednesday July 19, 2023 @01:07PM (#63699516)

    that comes with just the mere holding other people's crypto.

  • Ripple's XRP and Bitcoin are the two main cryptos that have regulatory clarity. The rest are currently under assault still by the SEC via SEC vs Coinbase. Even Ethereum is in question because the SEC is schizophrenic about their reasoning about what it is (in terms of category).

    Rumors are spreading now that Ripple has major partnerships with big banks, ETFs, etc. lined up for the end of this year. If those rumors turn out to be true, all hell's going to break loose for anyone in crypto and not holding XRP o

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