U.S. regulators are taking a more positive stance towards cryptocurrency. Bloomberg Payward Inc. is reported to be preparing an IPO for 2026.
The San Francisco-based cryptocurrency exchange, if it is successful, would be the only publicly listed U.S. exchange for cryptocurrencies after Coinbase which became public in April of 2021. Kraken’s spokesperson declined to comment on any specific timeframe, but did tell Decrypt The company’s plan to go public includes a long-term view.
"We recently disclosed 2024 financial highlights to be more transparent about our business, which is something we started by being first to publish proof of reserves and we're going to continue to prioritize going forward,” the spokesperson told Decrypt. “We'll pursue public markets as it makes sense for our clients, our partners and shareholders."
Although rumors about Kraken’s IPO have been circulating online for many years, a regulatory climate unfavorable under former president Joe Biden and Gary Gensler as former SEC chair may have stopped the company from filing.
The U.S. Securities and Exchange Commission (SEC) filed charges in November 2023 against Kraken accusing the parent companies that operated the exchange to operate as an unregistered broker, dealer and clearing agency. SEC also claimed that Kraken mixed up customer funds with its own, paying expenses from customer accounts.
In November, the SEC filed a motion to dismiss Kraken's key legal defenses, arguing the exchange had prior notice of potential securities law violations.
The regulatory climate is changing with Donald Trump’s election as a crypto-friendly president. Already since his inauguration, the SEC has moved to dismiss numerous investigations and lawsuits into crypto firms—including an agreement in principle to drop its lawsuit against Kraken. After that decision, Kraken appears to be re-evaluating its options.
Andrew Hayward edited the book
