- The SEC has interrupted Exodus Wallet’s listing on NYSE.
- Exodus Wallet’s CEO has criticized the commission and its regulatory actions.
- The wallet service provider initially obtained approval from the stock exchange.
The United States financial watchdog, the Securities and Exchange Commission (SEC), has loomed over the crypto industry over the past years, tightening its grip on the asset class with relentless regulatory actions against crypto service providers.
The latest entity to join in the regulatory drama is crypto wallet service provider Exodus, whose plans to launch on the NYSE American have been abruptly halted by the regulatory commission.
SEC Review Halts Exodus NYSE Listing
According to a blog post dated May 8, 2024, the NYSE exchange has postponed the pre-planned listing of Exodus shares due to an ongoing review of the company’s registration statement by the SEC.
Sponsored
Emphasizing the setback, Exodus had anticipated its shares, with a par value of $0.000001, to begin trading on May 9, 2024, after securing formal approval from the exchange. However, a “last-minute” intervention by the commission disrupted these plans, despite the prior approval from the stock exchange.
As a result of this delay, the Bitcoin and crypto wallet provider added that it is considering listing on a national securities exchange once the SEC completes its review. In the interim, the company’s common stock will continue trading on OTC Markets’ OTCQX exchange under the symbol “EXOD.”
Exodus expressed disappointment in the SEC’s actions, hoping the commission would “act in good faith” to facilitate its timely listing on the NYSE American exchange.
The SEC’s actions have drawn criticism from the wallet provider’s top executive.
“It’s Beyond Frustrating:” Exodus CEO Criticizes SEC
In an X post on May 9, Exodus Wallet CEO JP Richardson condemned the SEC’s actions, describing them as a setback following the company’s year-long efforts with NYSE, including celebratory preparations.
Richardson highlighted Exodus’s past compliance with regulatory guidelines, expressing disappointment at being sidelined at the last minute.
Citing reasons for the pursuit of the listing, the CEO stated that the firm’s operation as a public company without the benefits of stock liquidity, which is provided by a listing on a national exchange such as NYSE is not sound business.
However, he assured that the regulatory setback wouldn’t affect the company’s performance or user base, committing to work with the commission for regulatory clarity.
On the Flipside
- The crypto industry has often criticized the SEC for its hostile and aggressive approach to regulations.
- Brad Sherman recently praised the commission’s regulatory actions, likening the crypto industry to “a garden of snakes.”
- Crypto retail platform Robinhood has recently come under the SEC’s scrutiny.
Why This Matters
The clash between the SEC and Exodus Wallet is yet another instance of the ongoing tensions between crypto service providers and regulatory authorities. The commission has frequently argued that its actions are investor protection-focused, and the outcome of its review will determine whether Exodus shares go live on the exchange.
Find out more about the SEC’s regulatory actions and the criticism it faces:
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