As an analyst with a background in both traditional finance (TradFi) and the cryptocurrency industry, I find the delay in Exodus Movement, Inc.’s (Exodus) NYSE American listing particularly disheartening. Having witnessed numerous crypto companies face similar regulatory hurdles, I am all too familiar with the implications this carries for their visibility and potential growth.
The Exodus Movement, Inc.’s (Exodus) New York Stock Exchange (NYSE) listing is being postponed due to the Securities and Exchange Commission (SEC) still examining its registration statement, which became effective on April 28.
The listing of Exodus’ Class A common stock shares on the NYSE American, which was previously given the green light at a par value of $0.000001 and scheduled to start trading on May 9, has been temporarily halted. This decision comes as a result of Exodus needing to wait for the Securities and Exchange Commission (SEC) to finish its regulatory review process before proceeding with the transition from OTCQX to NYSE American.
A postponement of going public for Exodus comes with significant consequences. Joining NYSE American could boost Exodus’s visibility and financial market prospects. However, this regulatory hurdle underlines the challenges crypto firms encounter when attempting TradFi-regulated endeavors.
Exodus CEO, JP Richardson, expressed his surprise and confusion at the delay, stating:
“We remain hopeful that the SEC will follow through on its commitment to treat us as the law intends. Exodus has been fully transparent and responsive throughout this process and we expect a swift resolution in this matter. In the meantime, we will continue to provide the best possible service and value for our customers and shareholders.”
I, as a researcher, discovered that a large number of employees and their families had convened in New York City to mark the occasion with celebrations.
“Throughout the process, we’ve strictly adhered to the regulations set. But unexpectedly, the rules were altered just before the finish line. This is incredibly disappointing,” he expressed.
As an analyst, I would interpret Exodus’ announcement as follows: Depending on the SEC’s final decision, we might reconsider our plans for a future listing. In the meantime, shareholders are not required to take any actions.
Lark Davis, a well-known entrepreneur and cryptocurrency influencer, expressed his opinion on the matter, predicting that the Securities and Exchange Commission (SEC) might be planning to file a lawsuit.
Davis’ remark, which may be intended as satire, brings attention to worries in the cryptocurrency sphere. These concerns have been amplified by the recent US House of Representatives decision to overturn the SEC’s restrictive banking directive for crypto, known as SAB 121.
A bipartisan legislative proposal, labeled H.J.Res.109, was introduced in the House by Representative Mike Flood of the Republican Party on May 8. The bill passed with a vote of 228 to 182. Flood characterized the SAB 121 as unjust towards banks aiming to store cryptocurrencies, as custodial assets are categorized as “off-balance sheet” assets.
The efforts made by lawmakers highlight the increasing friction between traditional financial institutions and crypto regulatory bodies, as the cryptocurrency sector continues to seek integration into the traditional financial system (TradFi).
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2024-05-10 12:41