Crypto com to Shut Down U S Institutional Services After SEC Lawsuits Target Industry

Starting June 21, the Singapore-based Crypto.com says that it will be shutting down its institutional services on its platform in the U.S. due to the “current market landscape” that shows “limited demand” for its services. U.S. regulators' recent assault on two of the largest crypto exchanges in the world, Binance and Coinbase, likely played a pivotal role in the company's decision to deprioritize and temporarily end its U.S. services for institutional clients.

Crypto.com, however, said its retail trading app would still survive, including UpDown Options, a product for crypto derivatives that is regulated with the Commodity Futures Trading Commission, one of the main regulators that sued Binance earlier this year.

Crypto.com points to its “verified proof of reserves” on its marketing materials, and claims more than 80 million users worldwide. It gained popularity for features like extending Visa debit cards to customers to use crypto in their everyday transactions.

The company said it might consider the possibility of restoring institutional services in the future, although the current regulatory environment makes that prospect appear increasingly dim.

Last week, the U.S. Securities and Exchange Commission sued Binance, alleging that it was selling unregistered securities and commingling customer funds, while Coinbase was illegally operating as an unlicensed securities exchange, brokerage, and clearing agency. The regulator accused both companies of endangering American customer assets.

Some analysts also say that the enforcement actions in America indicate that crypto will continue to survive even amid an unfavorable regulatory environment at home. "With Binance already ceasing all fiat operations in the U.S., Crypto.com shutting down U.S. institutional services altogether, and Robinhood delisting Solana, Cardano, and Polygon, crypto markets may care less and less about the U.S.," said Tim Frost, CEO of digital wealth platform Yield App. ... https://www.youtube.com/watch?v=V3rEzLS1-pY