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US SEC Delays Crypto Wallet Exodus’ Stock Listing at the Last Minute

2 mins
Updated by Harsh Notariya
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In Brief

  • SEC delays Exodus Movement, Inc.'s stock listing.
  • Review of registration statement cited for delay.
  • Exodus continues trading on OTCQX, seeks future listing.
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Exodus Movement, Inc. announced that the NYSE American has halted the listing of its Class A Common Stock. The listing was originally scheduled for May 9.

These ongoing developments underscore the complex interplay between innovation and regulation.

Why Exodus Faced Last Minute Delay?

The delay follows a last-minute directive from the Securities and Exchange Commission (SEC), necessitating further review of the company’s registration statement.

Consequently, the company has indicated that it might consider seeking a listing on a national securities exchange in the future once the SEC completes its review. Until then, Exodus’ shares will continue trading on the OTC Markets’ OTCQX exchange.

Read more: Best Crypto Wallets of 2024

“While we are surprised and confused by this last-minute decision, we remain hopeful that the SEC will follow through on its commitment to treat us as the law intends. Exodus has been fully transparent and responsive throughout this process and we expect a swift resolution in this matter,” Exodus CEO JP Richardson said.

This delay mirrors crypto companies’ broader regulatory challenges when pursuing public offerings. For instance, BeInCrypto reported similar obstacles for Ripple, another crypto heavyweight, in January.

During the World Economic Forum in Davos, Ripple’s CEO Brad Garlinghouse announced that the company’s initial public offering (IPO) plans were temporarily shelved due to a “hostile” regulatory environment in the US. This decision followed a protracted legal battle with the SEC, which began in 2020 over allegations of selling unregistered securities.

“In the United States, trying to go public with a very hostile regulator that’s approved your S-1, that doesn’t sound like a lot of fun to me,” Garlinghouse said.

He referred to Coinbase’s challenges, another major crypto firm encountering legal issues post-IPO despite initial SEC approval.

Read more: Top 5 Crypto Companies That Might Go Public (IPO) in 2024

The SEC plays a vital role in regulating public offerings. Historically, the SEC has maintained a strict stance against the crypto sector.

Its stringent review processes have also impacted companies like Robinhood, which initially delayed its IPO due to the SEC’s scrutiny of its crypto offerings. However, the company finally went public on July 29, 2021.

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Harsh Notariya
Harsh Notariya is an Editorial Standards Lead at BeInCrypto, who also writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created...
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