With more pro-crypto policy shifts in the market, Citadel Securities is making move to enter the industry.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Billionaire Ken Griffin’s organization, Citadel Securities, has revealed plans to dive into the digital currency trading ecosystem.
According to Bloomberg, this decision was based on President Donald Trump’s strong endorsement and preferences for cryptocurrency.
It is worth mentioning that for years, the Miami-based organization has maintained a careful stance toward crypto. This is because they are avoiding being categorized as a crypto exchange due to unclear digital assets policies in the United States of America.
However, with the expected changes in President Donald Trump’s crypto policy, the American market-making firm is confident about its prospects in the industry. Citadel Securities is now strategically positioning itself as a key player in the country’s digital asset ecosystem.
Still, sources familiar with the developing story say the firm is working to secure a reputable position as a market maker on leading exchanges. Top trading platforms named in this regard include Coinbase Global Inc (NASDAQ: COIN), Binance, and Crypto.com.
Eventually, if the fillings are approved, there is speculation that its initial operations will occur outside the US. However, the sources said the long-term strategy will depend on evolving regulations.
While Citadel Securities has not yet made an official statement, industry observers see this as a significant move that could reshape institutional participation in the crypto space. With competition in the VC world, the expectation is that it might trigger more involvement.
Notably, the firm’s past decisions not to be involved in digital assets trading were partly due to concerns over market integrity.
For context, the collapse of FTX in 2022 gave the firm more reasons to maintain its no-involvement strategy in crypto. That event exposed weaknesses and volatility in the digital assets industry. Another reason was the conflicts of interest and inadequate oversight of exchanges.
In response, Citadel Securities acted differently by partnering with Charles Schwab and Fidelity to create EDX Markets. EDX Markets operated as an institution-focused crypto exchange that launched in 2023.
With Trump’s government actively working on new policies, financial firms anticipate clearer guidelines that could encourage more institutional involvement in crypto.
For example, President Donald Trump has clarified that he wants the US to be the global leader in digital assets. This is in stark contrast to the previous administration’s regulatory crackdowns. There is speculation that the administration is presently working on the US Strategic Bitcoin Reserve that could help offset the national debt.
In addition, the United States Securities and Exchange Commission (SEC) has also taken positive measures to address the unclear crypto regulations of the Biden-led administration. The broad crackdown of the past years led to lawsuits on several exchanges.
However, a newly formed crypto task force led by Commissioner Hester Peirce is expected to introduce a structured framework for digital asset trading. This will give organizations like Citadel Securities more clarity on regulatory compliance.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
