- US regulatory clampdown has reportedly resulted in two significant firms pulling back their crypto trading activity
- The report comes in days after the SEC made significant moves in the crypto market
Wall Street firm – Jane Street and Jump Crypto – the crypto arm of trading firm, Jump Trading – are reportedly pulling back from crypto trading in the United States. According to a report by Bloomberg, the move was influenced by the regulatory crackdown on the crypto market in the United States.
Notably, the regulator’s scrutiny of the crypto sector soared after the collapse of several crypto firms, including FTX – once among the top crypto exchanges. Moreover, the United States Securities and Exchanges Commission’s (SEC) focus on the crypto market has increased in the past few months.
The commission had recently taken action against a crypto exchange – Bittrex. This, eventually, resulted in the firm shutting down its US unit and filing for bankruptcy.
The crypto scene in the US: Clarity or Clampdown?
Furthermore, even top US crypto actors like Coinbase and Gemini were not able to shake off the regulator’s overreaching scrutiny. Coinbase was notified that there might be an enforcement action against the firm through a Wells Notice. Meanwhile, the commission sued Gemini, alongside another crypto firm – Genesis. These firms were pulled up for the services provided on their platform, with the SEC labeling some as securities.
Jane Street first hit the crypto spotlights in 2018 with the firm confirming that it was already trading Bitcoin [BTC]. The firm, at the time, also expressed its interest in getting involved in the market after the emergence of more products. However, it is currently looking to reduce some of its crypto plans on a global level, Bloomberg reported.
Meanwhile, Jump Crypto is also set to follow in the footsteps of Jane Street. But, the company is minimizing its crypto activity only in the United States. What’s more important is that the report stated that these trading platforms will continue making a market for cryptocurrencies and are not closing shop entirely.
The platform was officially launched back in 2021, with Kanav Kariya leading the firm as President. Notably, Jump Crypto had a significant presence in the market before the formal launch.
Jump Crypto and Jane Street hit the same headlines after the fall of TerraUSD (UST). Reports claimed that federal prosecutors were investigating the chats of employees of both firms. The prosecutors were allegedly looking for information about whether or not market manipulation with regard to the collapse of UST.
Regulators were also seeking information pertaining to a potential bailout of the now-dead algo-stablecoin. However, no allegation has been made against the above-mentioned firms or their employees.
