Recent signs indicate a certain pause in the quick pace of crypto adoption by U.S. firms. Key players in the traditional financial industry, such as Nasdaq and Citigroup, seem to reconsider their stances towards the nascent crypto industry, citing regulatory uncertainty as a key concern.
Surprisingly, Nasdaq decided not to move forward with its plans to launch a crypto custody service, a move that has not gone unnoticed by other significant market participants. Following suit, Citigroup declared that it now reviews its partnership with Swiss crypto custody-only software provider Metaco. Simultaneously, State Street, another major U.S. asset manager, severed its ties with the London-based crypto custody provider Copper Technologies.
However, the picture isn’t uniform, and specific developments suggest a continuing bond between the traditional financial industry and crypto-native companies. For example, Societe Generale, the French banking behemoth, has received a license from the country’s regulator, allowing it to offer crypto custody services. This move made it the first entity in France to hold such a license. On another note, the UK-based asset manager Schroders reportedly seeks a crypto custodian to partner with, likely fostering its digital asset expansion.
The U.S regulatory environment appears to cast a contrasting shadow over these developments. The Securities and Exchange Commission (SEC) intensified scrutiny over the crypto sector, tackling everything from compliance troubles to outright scams.
However, Europe has shown a more embracive stance towards crypto regulations. The European Union has passed the Markets in Crypto-Assets (MiCA) bill, setting up the bloc’s first all-encompassing regulatory framework for crypto. The MiCA rules have gathered acclaim from industry players, who view them as critical for operational clarity.
Binance‘s CEO Changpeng Zhao (CZ) lauded the establishment of clear rules for the operation of crypto exchanges in the EU. Furthermore, Circle, the USDC-issuer, appears eager to expand in the European market, praising France for its innovative-forward approach towards crypto regulation. Circle’s CEO mentioned their aspiration to become one of the first crypto entities fully licensed in France.
Therefore, while some firms backpedal due to regulatory uncertainties, others press forward, banking on pioneers’ efforts to bring regulatory clarity to crypto, highlighting the different strategies at play.
Source: Cryptonews
