Crypto Industry’s IPO Challenge May End After US Elections

Several venture capitalists believe that the initial public offerings(IPO) challenge by leading crypto companies in the US might end no matter who wins the US Elections.

In fact, Bloomberg reported that several crypto companies such as Circle Internet Financial, Kraken, Fireblocks, Chainalysis and eToro may go public in the next one or two years.

Note that none of these firms have publicly discussed the probability of IPO. But, Circle has reportedly sent out a ‘confidential’ IPO plan to the US SEC in January 2024.Several industry veterans believe that the tough regulatory attitude of the current SEC Chairman Gary Gensler, who has launched law enforcement actions against companies such as Coinbase, Binance and Kraken, has led to a scarcity of cryptocurrency IPOs in recent years.

Haseeb Qureshi, managing partner of crypto VC fund Dragonfly Capital, “Regardless of who wins, the post-election environment should be better for potential crypto IPOs.”

While Trump could push the SEC to a more pro-crypto stance, Harris might “swap out Gensler for one of her own picks, which should result in more moderate crypto regulation in the US,” he said. Qureshi, also argued that companies that have already been under the radar of SEC and have been at loggerheads with SEC, might find carrying out IPOs difficult under Harris.

However, over all several VCs looking for exits at a time when Bitcoin is near all-time highs and risk appetites are returning, could consider the IPO route soon.

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