US investment bank Cowen shuts crypto trading unit
Cowen Inc. has indefinitely suspended its digital assets trading unit. The bank’s digital asset service exposed institutional investors to 16 cryptocurrencies, including bitcoin (BTC) and ether (ETH).
Cowen Inc., an over-a-century-old full-service investment bank acquired by North America’s leading lender, TD Bank Group, announced the indefinite suspension of its crypto trading service last March.
According to a Bloomberg report, Cowen’s digital asset unit was designed to offer institutional investors exposure and access to 16 major cryptocurrencies.
While web3 businesses within the United States have faced increased regulatory scrutiny since Bankman-Fried’s FTX exchange collapsed, Cowen did not state the exact reason for calling it quits.
Crypto regulatory dark clouds
However, the team has hinted at continuing its digital assets business “in a new home” with trusted counterparties that understand the needs of institutional investors.
It’s worth noting that many crypto-friendly banks in the United States have gone bankrupt in recent months, prompting authorities to point fingers at the burgeoning digital assets.
As reported by crypto.news in April, US House Financial Services Committee members from the Republican party sent letters to the heads of the country’s banking regulators, seeking clarity on possible coordinated actions against crypto-focused firms.
Despite repeated calls by crypto market participants for regulatory clarity in the country’s digital assets space, watchdogs like Gary Gnsler’s Securities and Exchange Commission (SEC) remain adamant, leaving web3 startups with no choice but to seek licenses abroad.