Circle, the issuer of USDC, has reaffirmed its decision to go public despite the recent actions taken against crypto-related firms. This is a significant move considering that other companies, such as Ripple, have postponed their initial public offerings (IPOs) due to law enforcement actions and the uncertain regulatory environment in the US. Circle had previously disclosed its intention to go public after merging with a special purpose acquisition company (SPAC) in 2021. However, in 2022, Circle CEO Jeremy Allaire revealed that the company failed to meet the US Securities and Exchange Commission (SEC) qualification deadline after receiving over 100 questions from the regulator. Despite this setback, Allaire emphasized that going public is still part of the company’s strategies.
In a recent job listing for a corporate counsel, Circle reiterated its decision to pursue its goal of going public. The chosen candidate would have the responsibility of assisting with the potential SEC process involved in going public, as well as contributing to the development of the company’s public policies, practices, and processes. However, Circle has not set a specific deadline for its decision but has indicated that it will continue its journey to go public as soon as practicable.
Circle’s determination to go public may serve as a blueprint for other crypto-related firms. Coinbase, for example, went public in April 2021 after receiving SEC approval for its registration on Form S-1. However, the SEC has accused Coinbase of not registering its exchange appropriately for its operations. The SEC clarified that approving a Form S-1 registration statement does not imply endorsement or an opinion on the legality of an issuer’s underlying business. Another company, Galaxy Digital, has also expressed its intention to be listed on Nasdaq. However, Eric Risley, the founder of crypto advisory firm Architect Partners, believes that the current regulatory environment poses a significant challenge for companies seeking to go public. He argues that the fundamental requirements for a successful IPO, such as strong business momentum and a positive or stable business environment, are currently lacking.
Kraken, a cryptocurrency exchange, has also hinted at going public. The company recently listed a job position for a senior corporate and securities counsel, emphasizing a preference for candidates with “public company reporting experience.” In June 2021, Kraken announced its intention to go public. However, no formal decision has been made yet, and the company remains focused on scaling its business and providing the best experience and products to its clients.
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The potential IPOs of these crypto-related firms, including Circle, Coinbase, and Kraken, are expected to have a positive impact on the prices of cryptocurrencies such as XLM. These moves signal growing acceptance and recognition of cryptocurrencies in the traditional finance world and could lead to new all-time highs for these digital assets.
It is important to note that the content provided in this article should not be taken as financial advice. Readers are advised to conduct their own research and exercise caution before making any investment decisions related to cryptocurrencies. Crypto News Flash does not endorse or take responsibility for any actions taken based on the information provided in this article.
