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Crypto Wallet Provider Exodus Faces Delay in NYSE American Stock Exchange Listing
Crypto wallet provider Exodus recently encountered an unexpected setback in its planned listing on the NYSE American Stock Exchange. According to a statement released on May 9th, the US Securities and Exchange Commission (SEC) made a last-minute decision to halt the listing, citing ongoing review of Exodus’s registration statement.
Exodus expressed hope that the SEC would proceed in good faith and allow the listing on NYSE to proceed without further delays. The company emphasized the undeniable potential of the crypto industry and its desire to contribute to the trading landscape. A spokesperson from Exodus stated:
“We’re hopeful the SEC will act in good faith, and Exodus will be welcomed to the NYSE in a timely manner. Crypto’s potential is undeniable…”
Earlier, Exodus had announced plans to uplist its shares from the OTCQX to NYSE American by May 9. CEO JP Richardson highlighted the move as a strategic decision aimed at enhancing long-term value for shareholders and expanding the company’s investor base, consequently boosting liquidity.
Despite the unexpected delay imposed by the SEC, Exodus remains open to exploring alternatives for listing on a national securities exchange in the future. In the interim, its shares with the ticker symbol EXOD will continue to trade on OTCQX. Richardson expressed the company’s perspective on the situation:
“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.”
On a positive note, recent unaudited reports on Exodus’ first-quarter financial performance revealed a significant 118% year-on-year revenue growth, amounting to approximately $29.1 million. The company also disclosed a growing user base, with around 1.69 million active users engaging with its platform.
SEC’s Stance on Crypto Regulations
Under the leadership of Gary Gensler, the SEC has adopted a stringent approach towards regulating the crypto industry. Gensler’s tenure has been characterized by efforts to incorporate digital assets within the existing regulatory framework, using parameters like the Howey test to determine the classification of cryptocurrencies as securities.
Despite the SEC’s proactive measures, there has been criticism regarding the regulator’s enforcement strategies, with calls for clearer legislative guidance from Congress. The slow progress in legislative initiatives has amplified uncertainty within the crypto sector, underscoring the need for a comprehensive regulatory framework.
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