Jane Street and Jump Retreating from the U.S. – Regulatory Pressure in the U.S. is causing many changes and less confidence in the industry. More crypto firms continue to seek “safe haven” outside the country.
On May 9, Bloomberg reported that two of the world’s top market-making firms Jane Street and Jump Crypto are taking a step back from conducting business in the United States amid heavy regulatory scrutiny.
This marks a major response to the increased pressure the financial watchdogs are mounting on the crypto industry. However, the firms are reportedly not backing out from trading digital assets entirely, rather they are planning on expanding operations outside the U.S.
Jane Street is heightening its plans for global crypto expansion. Similarly, Jump Crypto – a division of Jump Trading Group is ceasing its operation in U.S. markets with further plans to expand internationally. Bloomberg reported this development citing two persons who know about the issue.
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US regulations and the crypto industry
The United States has continued to tighten its regulatory grip on the crypto sector. The pressure became worse after the collapse of the crypto exchange FTX which happened over a 10-day period in November 2022.
This move by the regulatory body has caused unrest among crypto firm CEOs as well as investors. Some have described it as a “war on crypto.” Coinbase is one of the recent industry players who have responded to the Security and Exchange Commission.
Also, Binance – the world’s largest crypto exchange by trade volume was sued by the U.S. CFTC. The lawsuit claimed that Binance and its founder Changpeng ‘CZ’ Zhao broke federal law by offering unregistered crypto derivatives in the country.
However, these developments should not be mistaken for an ill future for cryptocurrency. In contrast, it simply shows the growth of the industry and the struggle for acceptance.
Crypto firms complying with laid down regulations will only strengthen the industry which will help for wider adoption and sustainable growth. Spokespersons for Jane Street and Jump Trading declined comments requests from Bloomberg.