Crypto wallet provider Exodus said the U.S. Securities and Exchange Commission (SEC) made a “surprising last-minute decision” that postponed its planned listing on the NYSE American Stock Exchange, according to a May 9 report rack.
NYSE said the SEC halted the listing because the financial regulator’s staff is still reviewing Exodus’ registration statement.
Exodus added:
“We are hopeful that the SEC will act in good faith, and that Exodus will be welcomed to the NYSE in a timely manner. The potential of Crypto is undeniable…’
Earlier this week, Exodus revealed that its shares would be upgraded from the OTCQX to NYSE American by May 9. At the time, CEO JP Richardson said the move would “create greater long-term value for our shareholders by increasing our presence within the equity markets.” investor community and, in turn, increase liquidity.”
However, now that the SEC has postponed the uplisting, Exodus said it may reconsider listing on a national stock exchange later. Nevertheless, the stock, with the ticker EXOD, would continue trading on OTCQX.
Richardson said:
“While we are surprised and confused by this last-minute decision, we remain hopeful that the SEC will keep its promise to treat us as the law requires. Exodus has been completely transparent and responsive throughout this process and we expect a quick resolution to this matter.”
Meanwhile, recent unaudited reports on Exodus’ first-quarter earnings revealed substantial revenue growth of 118% year-over-year, totaling approximately $29.1 million. The company said it has about 1.69 million active users.
SEC’s crypto reluctance
In recent years, the SEC, under the leadership of Gary Gensler, has taken an aggressive stance toward the emerging crypto industry.
Gensler’s tenure was marked by a focus on integrating crypto into the SEC’s regulatory framework, using the Howey test to classify digital assets as securities.
However, critics are pushing back against the SEC’s heavy-handed enforcement tactics and are urging Congress to provide clear regulatory guidance instead. Unfortunately, the pace of legislative action in this area is slow, further increasing uncertainty in the sector.