Exodus, a cryptocurrency wallet provider, is experiencing a delay in its planned listing on the New York Stock Exchange American (NYSE) as the United States Securities and Exchange Commission (SEC) is yet to complete its review of the company’s registration statement. The registration statement became effective on April 28, and the NYSE American had previously approved the listing of Exodus’ shares of Class A common stock. However, the transition from the OTCQX market to the NYSE American will remain on hold until the SEC completes its regulatory compliance process.
This delay in listing has significant implications for Exodus as it affects the company’s visibility and potential growth in the financial market. It highlights the challenges that crypto companies face when trying to venture into traditional finance (TradFi) regulated ventures.
JP Richardson, the CEO of Exodus, expressed surprise and confusion at the delay. He mentioned that employees and their families had gathered in New York City to celebrate the milestone. Richardson stated, “Every step of the way we’ve followed the regulatory rules given, and then at the last minute, the rules were changed. It’s extremely frustrating.”
Exodus clarified that the decision to relist after the SEC review would depend on the outcome, and stockholders do not need to take any action at this time. Lark Davis, an entrepreneur and crypto personality, commented on the situation, suggesting that the SEC might be preparing to sue Exodus.
While Davis’ comment may be satirical, it highlights the concerns within the crypto community, especially considering the recent U.S. House of Representatives vote to nullify the SEC’s anti-crypto banking guidance, SAB 121. The bipartisan bill, known as H.J.Res.109, was introduced by Republican Party Representative Mike Flood and passed on May 8. It received 228 votes in favor and 182 votes against. Flood argued that SAB 121 was unfair to banks seeking to offer crypto custody services, as custodial assets are always considered “off-balance sheet.”
These legislative efforts reflect the growing tension between financial institutions and regulatory bodies as the crypto market strives to enter the traditional finance sector.