Report: Top Market Makers Pull Out Of US Crypto Trading

As the U.S. war on cryptocurrencies gets worse, two of the world’s best market-making firms are getting nervous about selling digital assets.

As U.S. officials step up their efforts to shut down the crypto trading industry, Jane Street Group and Jump Crypto are pulling back from their plans to get into the business.

Also, the global trading company Jane Street is scaling back its plans for cryptocurrencies around the world because of legal uncertainty. A person familiar with the situation told Bloomberg that the murky regulatory seas have made it hard for the company to run its business in a way that meets its own standards.

Jump Crypto, a part of Jump Trading that deals with digital assets, is leaving the U.S. market for the same reasons, the company said.

U.S. Crypto Exodus

But it was proven that Jump Crypto is going international. Several U.S. crypto companies, like Coinbase, Gemini, and Galaxy Digital, are also going overseas.

Jane Street and Jump Trading were affected by some of the trouble on the cryptocurrency market last year. U.S. authorities went after them as part of a probe into the failed Terra/Luna ecosystem. Also, since 2019, Jump Crypto has been one of the biggest backers of the TerraUSD stablecoin project.

Jane Street has also been punished by the government. The Commodity Futures Trading Commission (CFTC) is suing Binance, and the story says that the company was mentioned anonymously in the CFTC’s case.

Also, Sam Bankman-Fried, who used to be CEO of FTX, worked at Jane Street in New York before moving in 2017 to start Alameda.

Even though the Securities and Exchange Commission (SEC) has blocked Grayscale’s plans for a crypto exchange-traded fund (ETF), Grayscale is still moving forward with its plans.

On May 9, Grayscale announced the creation of the Grayscale Funds Trust, which it said was:

“A new Series Trust that will allow Grayscale to independently manage and bring to market new and innovative products, as we continue to build out our ETF franchise and broader product family.”

It also registered with the SEC for a Grayscale Ethereum Futures ETF, a Grayscale Global Bitcoin Composite ETF, and a Grayscale Privacy ETF.

Crypto Market Outlook

Over the past 24 hours, nothing has changed on the crypto markets. So, after a 4.6% drop over the past week, the overall capitalization stays at $1.19 trillion.

BTC prices stayed the same all day at $27,694, and Ethereum prices stayed the same at $1,845 at the time this was written.