Despite the strong regulatory actions taken by the U.S. Securities and Exchange Commission (SEC), Circle, the issuer of the USDC stablecoin, remains undeterred in its pursuit of an initial public offering (IPO). Nevertheless, given the current regulatory landscape, Circle’s journey to going public is likely to involve some bumps along the way.
During the 2021 cryptocurrency bull run, Circle unveiled its intentions to become a publicly traded company through a merger with a special purpose acquisition company (SPAC). However, last December, Circle CEO Jeremy Allaire revealed that they “did not complete the SEC qualification in time.”
Despite this setback, Circle executives have emphasized that going public is a vital component of the company’s overall strategy. However, they have not set a specific deadline for their public listing. A Circle spokesperson told Blockworks, “We are not prepared to put a specific deadline on the decision, but we will be taking steps to continue our journey to go public as soon as practicable.”
Furthermore, a recent Circle job posting for a corporate counsel position hints at the company’s ongoing commitment to going public. The job description states that the role will involve “assisting with potential going public SEC process” and “supporting the building out of our public company policies, practices, and processes.”
Circle appears to remain confident in its ability to navigate the SEC’s public listing process, with CEO Jeremy Allaire recently asserting that the company holds a competitive edge over its rivals.
In addition to Circle, other cryptocurrency companies are also considering public listings in the United States. Crypto exchange Kraken, for example, has alluded to this potential move in a recent job posting. The job description highlights “public company preparedness” as a key area of focus for the legal team, with preference given to candidates possessing “public company reporting experience.”
Mike Novogratz’s company, Galaxy Digital, was also preparing for an IPO last year. However, given the SEC’s recent actions, it may hold off on progressing further. Novogratz has recently hinted at the possibility of shifting its customer base overseas.
As it stands, the future of Circle and other crypto players eyeing public listings remains uncertain, given the ongoing regulatory scrutiny. It remains critical for investors to conduct thorough market research before participating in any investments, as the opinions offered here do not represent guaranteed outcomes and should not be construed as financial advice. The author and publication assume no responsibility for any personal financial loss.
Source: Coingape
