Market makers Jane Street and Jump Trading are withdrawing from crypto trading in the US due to intensifying regulatory pressure on the industry, Bloomberg reports, citing an anonymous person. So, what altcoin projects do these companies have? Here are the details…
Jump Trading and Jane Street are leaving the cryptocurrency space
Citing the person, Bloomberg said that both firms are still making the market and have not left the crypto industry entirely. However, as Jane Street withdraws its global crypto expansion plans, Jump Trading’s crypto-asset trading unit Jump Crypto is withdrawing from US markets, although it still plans to expand internationally.
US policymakers and regulators intensified regulatory pressure on the crypto industry following the spectacular collapse of centralized exchange FTX. This move frightened both the experienced names of the sector and the investors. Some observers even called it the “war on crypto.” Industry giants like Coinbase responded to the SEC.
In March, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against crypto exchange Binance and its founder, Changpeng Zhao, alleging that the company offered unregistered crypto derivatives products in the US in violation of federal law. Disgraced former FTX CEO Sam Bankman-Fried worked at Jane Street before entering the crypto industry and has been known to hire former Jane Street employees as managers or employees, including former FTX USA President Brett Harrison. Spokespersons for both Jane Street and Jump Trading declined to comment on the story.
What altcoin projects do the two companies have?
As a result, market makers Jane Street and Jump Trading are backing down from cryptocurrency trading in the US due to increased regulatory pressure on the industry, according to an insider familiar with the matter. According to the portfolio information of the companies, Jump Trading mainly holds $3 billion Ethereum, $250 million Shiba Inu, $70 million Polygon, $53 million USDC, $36 million Bitcoin, $4 million Lido, $3.4 million Avalanche. Also POP, PENDLE and LINA; are in their portfolio.
Jane Street, on the other hand, mainly holds Ethereum. The amount of ETH held is close to 97 million dollars. On the other hand, there are $80 million USD Coin (USDC), $52 million USDT and $2 million Chainlink (LINK).
The move by these market makers came as the regulatory environment surrounding cryptocurrencies in the US became increasingly uncertain and stricter. The Securities and Exchange Commission (SEC) blocks the sale of unregistered securities. The Biden administration has proposed new regulations that would require crypto exchanges to report transactions over $10,000 to the IRS. This latest news adds to the growing list of concerns surrounding the future of cryptocurrency trading in the US.
