At the 2024 Bitcoin 
$98,937 Conference, Donald Trump pledged to make the United States “the world’s crypto capital” and announced the removal of SEC Chair Gary Gensler. With his recent victory, Trump prepares to become the 47th president, leading the crypto community to anticipate positive changes in the regulatory environment.
Increased IPO Opportunities
Ram Ahluwalia, CEO of Lumida Wealth, indicated during the Bits + Bips podcast that the IPO market is set to open up. He highlighted the potential for public offerings from stablecoin issuer Circle and blockchain analysis firm Chainalysis. Circle submitted its IPO application to the SEC in January, with CEO Jeremy Allaire asserting their commitment to proceed with the offering.
Chainalysis was recognized as a candidate for an IPO in 2022, valued at $8.6 billion. However, company officials have refrained from commenting on their IPO plans at this time. Other potential IPO candidates include cryptocurrency exchange Kraken, custody service provider Fireblocks, and trading platform eToro.
Not Every Company is Suited for IPOs
Quynh Ho, head of venture capital and corporate development at GSR, emphasized that the IPO process may not be suitable for every company. “A company must have stable profitability and be able to accept the obligations that come with going public,” she stated.
“An IPO is a challenging process not suitable for every business.” -Quynh Ho.
Karl Egbert, a lawyer at Baker & McKenzie, noted that a more crypto-friendly SEC could reduce regulatory risk for some firms. Egbert remarked that mitigated regulatory risks would encourage traditional crypto infrastructure companies to consider IPOs.
Companies like Anchorage Digital and NYDIG are considered viable candidates for IPOs due to their stable structures. Anchorage Digital reached a valuation of approximately $3 billion in March 2023, while NYDIG was valued at $7 billion in 2021. Alongside IPOs, the listing of crypto companies on U.S. exchanges could facilitate the emergence of a global crypto market.
Ultimately, following Trump’s victory, an increase in IPOs within the crypto sector is anticipated. However, experts caution that only some companies will benefit from this process, and not every firm is suited for going public. Stability, regulatory compliance, and growth potential are crucial factors for a successful IPO among crypto firms.
