- Jane Street and Jump Crypto are reportedly scaling back from crypto trading in the U.S.
- The market-making giants have blamed the regulatory crackdown in the country for this move.
- Jane Street plans to pull back from crypto trading globally while Jump Crypto plans on expanding crypto efforts internationally.
Top market-making firms Jane Street Group and Jump Trading are reportedly retreating from the American crypto market. The top market makers are scaling back their crypto trading activities in the United States amid intensifying regulatory scrutiny from federal regulators.
As per a report from Bloomberg, Jane Street and Jump Crypto are significantly scaling back their crypto trading activities in the United States. The recent crackdown on the crypto industry, at the hands of federal agencies like the Securities and Exchange Commission (SEC), was a major motivating factor for the market makers to scale back crypto trading.
According to a person familiar with the matter, Jane Street’s plans to limit crypto activities are not limited to the United States. The market-making giant is considering scaling down its global crypto operations significantly. The lack of regulatory clarity associated with digital assets has reportedly made it difficult for the company to meet its internal standards.
Breaking! Major crypto market makers Jane Street and Jump are exiting US markets. Yet another big "win" for the SEC as it drives more companies abroad.— Lark Davis (@TheCryptoLark) May 9, 2023
Jump Crypto, on the other hand, is looking to expand its crypto trading operations around the world. Two people familiar with the matter revealed that the crypto market maker will continue to grow its digital asset-facing business. Jane Street and Jump Crypto plan to continue crypto market-making activities on a smaller scale.
The latest decision by some of the top market makers in crypto to exit the American market did not sit well with the crypto community on Twitter. Crypto influencers bashed the Securities and Exchange Commission for its hostile stance towards crypto, which has led to crypto innovation and technology moving out of the country.
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