Exodus CEO Disappointed by SEC Delay During Celebrations

Explore the impact on Exodus and the challenges faced by crypto companies in traditional finance. CEO JP Richardson remains hopeful for a swift resolution.

May 10, 2024 - 14:12
May 10, 2024 - 11:17
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Exodus CEO Disappointed by SEC Delay During Celebrations
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Exodus Movement, Inc. (Exodus) is facing a regulatory hurdle in its NYSE (New York Stock Exchange) American listing plans, despite having received initial approval. This setback has led to disappointment for "numerous employees and their families" who had assembled in New York City for the awaited occasion.

Exodus' registration statement for listing on the NYSE American was supposed to go live on April 28, and trading of its Class A common stock, valued at $0.000001 per share, was slated to start on May 9. However, a review by the Securities and Exchange Commission (SEC) is currently underway, leading to a postponement in Exodus' move from the OTCQX to the NYSE American until the SEC finishes its regulatory evaluation.

The postponement of the listing carries significant implications for Exodus, impacting its visibility and potential growth in the financial market. This regulatory challenge underscores the obstacles faced by crypto companies when venturing into traditional finance (TradFi) under regulated frameworks.

JP Richardson, CEO of Exodus, expressed surprise and confusion regarding the delay, stating:

"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. In the meantime, we will continue to provide the best possible service and value for our customers and shareholders."

Richardson mentioned that numerous employees and their families had congregated in New York City "to celebrate the moment," only to encounter disappointment because of the unforeseen delay. He voiced frustration regarding the sudden changes in regulatory prerequisites.

Exodus indicated that they might reconsider their listing decision after the SEC review and assured shareholders that no immediate action was needed. Yet, uncertainties loom large, as noted by entrepreneur and crypto personality Lark Davis, who suggested that the SEC might be on the brink of taking legal action.

Davis' comment, albeit somewhat satirical, mirrors broader worries in the crypto realm, notably after the recent U.S. House of Representatives vote nullifying the SEC's anti-crypto banking guidance, SAB 121. The bipartisan H.J.Res.109, introduced by Republican Representative Mike Flood, passed on May 8 with a vote of 228 to 182. Flood lambasted SAB 121 for what he sees as its unjust treatment of banks involved in crypto custody, labeling custodial assets as "off-balance sheet."

These legislative developments highlight the growing tensions between financial institutions and regulatory bodies as the crypto market endeavors to integrate with traditional finance.