Nasdaq Withdraws Crypto Trading Framework Amid SEC Scrutiny, Delaying Institutional Adoption
Nasdaq has withdrawn its proposed crypto trading framework submitted to the U.S. Securities and Exchange Commission (SEC), which aimed to offer a regulated pathway for traditional financial institutions to trade cryptocurrencies and digital assets. Earlier, Nasdaq had also called for clearer regulatory classifications, urging the SEC to treat some digital assets as securities with a transparent, consistent framework. The decision to withdraw the framework reflects persistent regulatory uncertainty and strict oversight in the U.S., especially as the SEC clarifies the status of memecoins and stablecoins. Industry analysts suggest that the lack of explicit SEC guidance and heightened regulatory scrutiny were key factors behind the withdrawal. This move could slow institutional adoption of crypto trading on Nasdaq, highlighting ongoing regulatory challenges and indicating that similar proposals may face obstacles until regulatory clarity is achieved. The development underscores the complex and evolving landscape of U.S. crypto regulation, impacting both institutional and retail investors.
Bearish
Nasdaq’s withdrawal of its proposed digital asset trading framework underlines the ongoing regulatory uncertainty and heightened SEC scrutiny facing the crypto sector in the United States. This move delays the entry of traditional financial institutions into crypto trading on a major exchange, dampening expectations for accelerated institutional adoption. Regulators’ lack of clear guidelines increases market hesitancy and could negatively impact short- and medium-term trading volumes and sentiment, especially for assets seeking institutional legitimacy. While the longer-term outcome depends on future regulatory clarity, the immediate effect is a negative signal for traders anticipating increased mainstream participation and market expansion.