Cryptocurrency investors may be moving away from the days when positive news from the United States boosted the markets. The increasing negative sentiment in the market, ahead of the upcoming Fed meeting, is now reinforced by even worse news. The reversal by the US giant has shattered investors’ dreams.
Nasdaq Crypto Custody
Nasdaq has halted its plans for a cryptocurrency custody service due to US regulatory conditions. The stock exchange operator had previously stated that it had brought together the infrastructure and regulatory approval for the custody service in March. CEO Adena Friedman announced today that Nasdaq (NDAQ) has abandoned its plans for the cryptocurrency custody service, which was scheduled to launch in the second quarter of this year.
In March, the operator of the Nasdaq stock exchange had stated that it had brought together the necessary infrastructure and regulatory approval for a cryptocurrency custody service. The company had applied to the New York Department of Financial Services (NYDFS) for a limited-purpose trust company that would oversee the custody business. Nasdaq’s move appears to be targeting cryptocurrency firms and related services in the US, dealing a blow to the institutional adoption of crypto.
Under current circumstances, the likelihood of ETF applications being approved may also decrease in the eyes of investors.
