The crypto industry in the US is facing increased regulatory pressure, which has led some of the top market-making firms to scale back their trading activities.
Jane Street and Jump Moving Away from Crypto
The crypto industry in the US is facing increased regulatory pressure, which has led some of the top market-making firms to scale back their trading activities. According to Bloomberg, Jane Street Group and Jump Crypto, the digital-assets arm of Jump Trading, are among those who are reducing their exposure to the US crypto market.
Jane Street Group, a leading firm in markets such as ETFs and corporate bonds, has decided to limit its global crypto ambitions as well, due to the uncertainty around the regulatory environment. A person familiar with the matter told Bloomberg that the firm found it hard to operate the business in a way that met its internal standards. Jump Crypto, on the other hand, is still expanding internationally, but is withdrawing from the US market for similar reasons, two people familiar with the matter said.
Both firms are still making markets in crypto, but on a smaller scale, and have not abandoned the industry completely, the people said. They declined to comment to Bloomberg. The regulatory crackdown has been triggered by the collapse of high-profile firms and projects in the crypto space, such as FTX, the exchange founded by Sam Bankman-Fried, and TerraUSD stablecoin. The regulators have targeted various aspects of the industry, including trading platforms, stablecoin issuers and brokers.
