Citadel Enters Crypto, Bets on Post-2024 Regulatory Shift

Citadel Securities, the market-making giant founded by Ken Griffin, is set to enter the crypto market-making sector, positioning itself as a liquidity provider amid expectations of regulatory shifts following the 2024 U.S. presidential election. The firm's move signals a calculated entry into a sector it once approached with caution, as regulatory winds shift in the wake of the election.

Citadel Securities is targeting major cryptocurrency exchanges like Coinbase, Binance, and Crypto.com, marking a shift in strategy for the market-making giant. The firm had previously taken a cautious approach to digital assets, avoiding retail-focused platforms due to regulatory uncertainties in the United States. However, with firms like Jane Street and Jump pulling back from the U.S. crypto market following increased regulatory scrutiny in 2023, Citadel Securities appears to be looking for an opportunity to fill the gap.

Citadel Securities has already entered digital assets through EDX Markets, an institution-only crypto exchange launched in 2023 in collaboration with Charles Schwab and Fidelity Investments. EDX was designed to apply traditional market structures to crypto trading, offering institutional investors a familiar model for execution and settlement. The firm's expansion into crypto aligns with broader industry efforts to navigate evolving U.S. regulations on digital assets.

President Donald Trump has been pushing for the U.S. to become a global hub for cryptocurrency. During the Future Investment Initiative conference in Miami last week, he reiterated his vision of making the U.S. the "crypto capital." He demonstrated similar pro-crypto campaign promises at the Bitcoin 2024 conference last year, where he declared that the U.S. would become a "Bitcoin superpower." Despite Trump's past skepticism, his stance has shifted dramatically since taking office. He has issued an executive order on digital assets and supported the SEC's formation of a crypto task force led by Hester Peirce. His administration has also formed a national crypto policy group.

The SEC and CFTC are exploring collaboration on crypto regulations, discussing the revival of a joint advisory committee that could provide clearer guidelines for the industry. With leadership changes underway at both agencies, the crypto sector is watching closely for potential shifts in policy direction.

Citadel Securities' Crypto Strategy Develops Outside the U.S.

Citadel Securities plans to launch its crypto operations outside the U.S., with potential expansion hinging on regulatory developments