Jane Street Group and Jump Crypto are scaling back their crypto trading plans due to increased regulatory measures by U.S. authorities.
Bloomberg reports that global trading firm Jane Street is reducing its crypto plans worldwide as regulatory uncertainty has made it challenging to meet internal standards. Similarly, Jump Crypto, the digital assets division of Jump Trading, is halting its operations in the U.S. market for the same reasons.
American Crypto Exodus
Several other U.S. crypto firms like Coinbase, Gemini, and Galaxy Digital are also moving overseas due to regulatory concerns. However, Jump Crypto is expanding globally, despite its withdrawal from the U.S. market.
Last year, Jane Street and Jump Trading faced the brunt of the crypto market’s turmoil and were targeted by U.S. prosecutors in an investigation into the failed Terra/Luna ecosystem. Additionally, Jump Crypto had been a significant investor in the TerraUSD stablecoin project since 2019. Similarly, Jane Street was cited in anonymity by the Commodity Futures Trading Commission (CFTC) in its lawsuit against Binance.
Despite regulatory hurdles, Grayscale, the world’s leading crypto asset manager, is pushing ahead with its crypto exchange-traded fund (ETF) ambitions. On May 9, Grayscale announced the creation of a new Series Trust to manage innovative products and build its ETF franchise, and filed registration with the SEC for a Grayscale Ethereum Futures ETF, a Grayscale Global Bitcoin Composite ETF, and a Grayscale Privacy ETF.
Crypto Market Outlook
The crypto market has remained flat in the past 24 hours, with total capitalization at $1.19 trillion following a 4.6% decline over the past week. BTC and Ethereum prices remained unchanged at $27,694 and $1,845, respectively, at the time of writing.