At the 2024 Bitcoin 
$98,520 Conference, Donald Trump pledged to establish the United States as “the world’s cryptocurrency capital” while announcing the dismissal of SEC Chairman Gary Gensler. Following his recent victory, Trump prepares to become the 47th president of the country, and the cryptocurrency community anticipates positive changes in the regulatory environment.
Opportunities for Initial Public Offerings Will Increase
Ram Ahluwalia, CEO of Lumida Wealth, indicated in a Bits + Bips podcast episode that the IPO market will open up. He specifically mentioned the potential for stablecoin issuer Circle and blockchain analysis firm Chainalysis to go public. Circle submitted its IPO application to the SEC in January, and CEO Jeremy Allaire confirmed their commitment to going public.
Chainalysis is among the companies considered suitable for an IPO with a valuation of $8.6 billion in 2022. However, company officials have not commented on their IPO plans at this time. Other potential IPO candidates include cryptocurrency exchange Kraken, custody service provider Fireblocks, and trading platform eToro.
IPOs Are Not Suitable for Every Company
Quynh Ho, head of venture capital and corporate development at GSR, emphasized that the IPO process is not appropriate for every company. Ho stated, “A company must have stable profitability and be able to accept the obligations that come with going public.”
“An IPO is a challenging process that is not suitable for every business.” -Quynh Ho.
Karl Egbert, a lawyer at Baker & McKenzie, noted that a more crypto-friendly SEC would reduce regulatory risks for some firms. Egbert mentioned, “Reducing regulatory risk will make it easier for some traditional crypto infrastructure companies to consider an IPO.”
Companies like Anchorage Digital and NYDIG are considered suitable candidates for IPO due to their stable structures. Anchorage Digital reached a valuation of approximately $3 billion in March 2023, while NYDIG had a valuation of $7 billion in 2021. As initial public offerings occur, the listing of cryptocurrency companies on U.S. exchanges will contribute to the development of a global cryptocurrency market.
Ultimately, following Trump’s victory, an increase in IPOs within the cryptocurrency sector is expected. However, experts warn that only certain companies may benefit from this process, and not every firm is suited for going public. Factors such as stability, regulatory compliance, and growth potential are critical for a successful IPO among cryptocurrency firms.
