Exodus, a crypto wallet company, is experiencing a setback in its plan to list on the New York Stock Exchange American (NYSE). The delay is due to the United States Securities and Exchange Commission (SEC) reviewing the company’s registration statement, which became effective on April 28.
The NYSE American had previously approved the listing of Exodus’ Class A common stock, with shares valued at $0.000001, and trading was expected to commence on May 9. However, the SEC’s review process has put a hold on Exodus’ transition from the OTCQX market to the NYSE American.
This delay has significant consequences 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 venturing into the regulated world of traditional finance (TradFi).
The CEO of Exodus, JP Richardson, expressed surprise and confusion at the delay, especially since employees and their families had gathered in New York City to celebrate the milestone. Richardson stated that the company had followed all regulatory rules, only to have them changed at the last minute. He described the situation as frustrating.
Exodus clarified that it would reconsider relisting after the SEC completes its review, 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 may take legal action against Exodus. While Davis’ comment may be satirical in nature, it raises concerns within the crypto community. These concerns have been amplified by 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 with 228 votes in favor and 182 votes against. Flood argued that SAB 121 unfairly affected banks seeking to provide 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 tries to establish itself in the world of traditional finance.