Nasdaq is delaying the launch of its crypto custody service due to uncertainty about how the U.S. government will regulate cryptocurrencies.
Nasdaq CEO Adena Friedman announced on July 19, 2023, that the firm had decided to postpone its ambitions to establish a digital asset custodian company in the United States due to the unclear regulatory landscape and shifting macroeconomic conditions.
Friedman claimed that, despite Nasdaq’s dedication to the market for digital assets, it is not yet ready to take action. Before starting its digital asset custodian service, the company is awaiting more clarification from regulators. Nasdaq is still working on solutions for the market at the moment.
Although it is being cautious, Nasdaq is still committed to its intentions to offer a spot Bitcoin ETF. Although the company has postponed the official launch of its cryptocurrency custody service, it continues to work with regulators to bring a spot Bitcoin ETF to market. Nasdaq and BlackRock are working together to introduce a spot Bitcoin ETF.
The company initially planned to start its digital asset custody service by the end of the second quarter of 2023 but has subsequently opted to postpone the launch. The company first revealed its ambitions to do so in November 2022.
It had been preparing to launch its custody service for digital assets, but the SEC’s recent legal actions against Coinbase and Binance.US has complicated the country’s regulatory environment. This is one of the reasons that caused Nasdaq to delay the launch of its service.
The SEC is tough on cryptocurrencies, claiming that the majority of them are securities. Due to this, crypto companies are now on the defensive, which has caused several legal issues.
Crypto businesses have found it challenging to operate in the United States due to the unclear laws surrounding cryptocurrency, thus many have decided to focus on other nations.