Quantfury Gazette


USA Opening Its Doors To Crypto

David Ahumada
Quantfury Marketing Team
USA Opening its Doors to Crypto

The awaited, first institutional crypto exchange, EDX Markets, has just launched in the USA, which debuted in November 2022, causing confusion for many, yet bringing ease to some in the crypto and investment space. Many are still perplexed, how could this be? 

The confusion for many, stemmed from the regulatory debacles the SEC has had with players in the crypto space, as it was seen with crypto exchange giant, FTX, last year. As of a few weeks ago, Binance and Coinbase crypto exchanges also came under fire by the SEC and are being sued. If the USA and the SEC is so against crypto, how has institutionally backed EDX Markets come to fruition? Is it because it’s backed by major financial firms like Citadel Securities, Fidelity Investments, and Charles Schwab Corp. (NYSE: SCHW), along with others that have “a seat at the table”?

The reality is quite simple, which is that the USA along with the SEC were never against crypto or its dominating crypto asset, Bitcoin. They have been against the unlicensed and unregistered bad actors in the industry; companies providing unregulated services and allowing retail traders to partake in the trade or investment of securities whilst being taken advantage of. In many cases, unethically, without any formal regulatory oversight. 

Although EDX Markets is a crypto exchange, using a noncustodial model of operation – where the exchange does not directly handle customer’s digital assets – differentiating it from other global crypto exchanges. This different approach, simply allows EDX Markets to act as an intermediary for institutional clients to agree on price to exchange crypto assets and dollars. Differing from the copious offerings of crypto coins and projects offered on various other crypto exchanges, where many people often find themselves involved in pump and dump scenarios, EDX Markets is playing it smart and conservatively offering crypto trading for four cryptocurrencies: Bitcoin (Binance: BTC/USDT), Ether (Binance: ETH/USDT), Litecoin (Binance: LTC/USDT), and Bitcoin Cash (Binace: BCH/USD).

With this in mind, EDX Market has created an undisputable cushion between itself and the SEC by doing things the right way. Doing so, by minimizing conflict of interest with their noncustodial approach of clients’ funds, whilst improving security since they aren’t holding the assets and limiting initial token offering with cryptocurrencies not deemed to be securities by SEC. In doing this, they are steering clear of the heated SEC, ensuring they aren’t in their crosshairs. 

What’s become clear is that the USA and the SEC are clearly open to cryptocurrencies and companies that want to play by the rules; companies with their clients at the forefront of their decision making. The narrative that’s continuously been pushed to the contrary is not the reality. This can recently be seen with the likes of the world’s largest asset manager, Blackrock (NYSE: BLK), filing for a spot Bitcoin ETF.  Major institutional investors in the USA are clearly interested in the crypto ecosystem and its technology but want to ensure the safety of their funds. The questions on the table now; will this exchange’s journey be cut short? Or is this the start of much more to come with the growth of crypto adoption?


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