Crypto Firms Reignite IPO Aspirations Amid Market Hopes

In a notable shift within the cryptocurrency industry, several prominent firms are hinting at plans to go public once again, buoyed by a revitalized market and the prospects of a more favorable regulatory environment under former U.S. President Donald Trump. After facing considerable challenges in recent years, including legal battles and regulatory scrutiny, these companies are reassessing their strategies and eyeing initial public offerings (IPOs) as a means to capitalize on the current crypto-positive sentiment.

Challenges of the Past Few Years

The cryptocurrency sector has experienced rocky terrain over the past few years, especially under the stewardship of the Securities and Exchange Commission (SEC) led by Chair Gary Gensler. During this time, many firms found themselves embroiled in lawsuits or facing significant questions about whether the digital assets they offered should be classified as securities. This uncertainty stymied the public offering ambitions of numerous companies in a sector that had previously seen explosive growth.

However, as Trump’s administration promises a renewed positive outlook for cryptocurrency, firms—including well-known entities like Gemini, Kraken, and Circle—are expressing renewed interest in exploring the IPO route.

Companies Considering Going Public

Several leading crypto firms are currently assessing or actively pursuing IPO plans:

Circle

Circle, the firm behind the $55 billion USD Coin (USDC) stablecoin, has been vocal about its desire to go public. The company originally filed for an IPO with the SEC in January 2022 after an initial attempt earlier that year was unsuccessful. Despite the considerable time elapsed, CEO Jeremy Allaire remains optimistic, stating, ‘Becoming a public company has always been a part of our core strategy.’ In September 2023, Allaire indicated that Circle would relocate its headquarters to New York, viewing it as a strategic move to align with the heart of Wall Street.

Kraken

Following the successful IPO of Coinbase in April 2021, Kraken, another major cryptocurrency exchange, has expressed a keen interest in following suit. Former CEO Jesse Powell indicated that the exchange aimed for a public offering within 18 months of Coinbase’s launch. Although internal changes dampened those prospects temporarily, current co-CEO Arjun Sethi revived the conversation around an IPO in early 2024, emphasizing the company’s diverse options for raising capital, whether as a private or public entity.

Gemini

Gemini, the crypto exchange founded by the Winklevoss twins, has had its IPO aspirations hindered by market downturns in 2022 stemming from the collapse of key players in the space. Although talks of a public offering resurfaced in 2021, the firm ultimately decided to hold off. Recently, however, sources have revealed that Gemini is in discussions with potential advisors to reignite its listing plans.

Ripple

Another key player in the crypto space is Ripple, the issuer of the XRP token, which has been navigating its own legal conundrums with the SEC regarding whether XRP should be classified as a security. CEO Brad Garlinghouse has mentioned that the firm may consider an IPO once the ongoing legal battle concludes. Despite a favorable ruling from Judge Analisa Torres indicating that XRP is not a security, the SEC has appealed the decision, leaving Ripple’s IPO plans in a state of uncertainty but possible resurgence.

Bullish

Providing potential public offerings is also on the agenda for Bullish, a crypto exchange owned by CoinDesk. Initially announcing its intentions to go public through a special purpose acquisition vehicle (SPAC) back in 2021, Bullish is now reportedly working with financial heavyweights Jefferies and JPMorgan to explore its IPO possibilities as early as this year.

Additional Candidates for IPOs

In addition to the aforementioned firms, other crypto-related entities such as Figure, Anchorage Digital, Chainalysis, and Fireblocks are also prominent candidates for public offerings in the near future. Predictive analyses from asset manager Bitwise suggest that these firms may make their move into public markets as the regulatory landscape stabilizes.

Conclusion

As optimism grows around a more crypto-friendly regulatory climate following Trump’s administration, leading firms in the cryptocurrency sector are positioning themselves to tap into public markets. With a mix of established exchanges and innovative tech companies reconsidering their IPO strategies, the coming months could see significant transformations in how the crypto industry engages with investors and the broader financial market.

For continued updates on the developments in the cryptocurrency sector, follow DL News and its correspondent Tim Craig, based in Edinburgh. Tips and insights can be sent to [email protected].

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