Market makers Jane Street and Jump Trading are retreating from crypto trading in the U.S. as a regulatory crackdown on the industry has intensified, Bloomberg reported, citing a person familiar with the decision.
Both firms are still making markets and not abandoning the crypto industry entirely, Bloomberg said citing the person. However, Jane Street is scaling back its global crypto expansion plans, while Jump Crypto - the digital assets trading unit of Jump Trading - is pulling back from U.S. markets, although it's still planning to expand internationally, the news outlet reported citing two people familiar with the matter.
U.S. policy makers and regulators have intensified regulatory pressure on the crypto industry after the spectacular collapse of centralized exchange FTX. The move has spooked industry veterans and investors alike. Some observers have even called it a "war on crypto." Industry giants like Coinbase have hit back at the SEC.
Market makers Jane Street and Jump Trading are retreating from crypto trading in the U.S. as a regulatory crackdown on the industry has intensified, Bloomberg reported, citing a person familiar with the decision.
Both firms are still making markets and not abandoning the crypto industry entirely, Bloomberg said citing the person. However, Jane Street is scaling back its global crypto expansion plans, while Jump Crypto - the digital assets trading unit of Jump Trading - is pulling back from U.S. markets, although it's still planning to expand internationally, the news outlet reported citing two people familiar with the matter.
U.S. policy makers and regulators have intensified regulatory pressure on the crypto industry after the spectacular collapse of centralized exchange FTX. The move has spooked industry veterans and investors alike. Some observers have even called it a "war on crypto." Industry giants like Coinbase have hit back at the SEC.
In March, the U.S. Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance and founder Changpeng Zhao on allegations the company knowingly offered unregistered crypto derivatives products in the U.S. against federal law.
Disgraced, former FTX CEO Sam Bankman-Fried worked at Jane Street before entering the crypto industry and was known to hire former Jane Street employees as executives or employees, including former FTX US President Brett Harrison.
Spokespersons for both Jane Street and Jump Trading declined to comment on the story to Bloomberg.