IPO Plans of Circle Expected to Propel XLM Price to New All-Time

• Circle reinstated its decision to go public.

• It is believed that this would be a huge task following the recent actions against crypto firms.

Law enforcement against crypto-related firms has forced companies including Ripple to postpone their Initial Public Offering (IPO). The unclear regulatory environment within the US has also forced others to abandon that plan to avoid being targeted by regulators. Regardless, the issuer of USDC, Circle, is still pursuing its goal of going public. It can be recalled that the company earlier disclosed this intention after merging with a special purpose acquisition company (SPAC) in 2021. 

Later in 2022, Circle CEO Jeremy Allaire disclosed that the company did not meet the US Securities and Exchange Commission qualification deadline. This was after over 100 questions were raised by the regulator in response to its application. Jeremy Allaire expressed his disappointment in failing to beat the deadline while emphasizing that going public is part of its strategies. 

Circle recently reiterated its decision in a job listing for corporate counsel. The candidate would be tasked to “assist with potential going public SEC process.” In addition, the person would play an integral role in the building of their public company policies, practices, and process. 

According to a spokesperson of the Circle, they are not prepared to fix any deadline for themselves.

We are not prepared to put a specific deadline on the decision, but we will be taking steps to continue our journey to go public as soon as practicable.

Other Crypto Firms to Follow Circle on the Same Path

Crypto exchange Coinbase went public in April 2021, after the SEC approved its registration on Form S-1. However, the Commission has accused Coinbase of failing to register its exchange appropriately for its operations.

SEC also had this to say about the Form S-1 approval and the current charge against the exchange.

Declaring effective a Form S-1 registration statement does not constitute an SEC or staff opinion on or endorsement of, the legality of an issuer’s underlying business.

Another crypto-related company, Galaxy Digital, has declared its intention to be listed on Nasdaq. However, Eric Risley, founder of crypto advisory firm Architect Partners believes that the current regulatory environment would make it a huge challenge for any company that wants to go public. 

The fundamental requirements for a viable [initial public offering]are strong business momentum and a positive, or at least stable, business environment. While each company is unique, it’s safe to conclude that neither of these requirements is present today. Until that changes, the IPO path will likely be postponed for most companies.

Another company that has hinted at going public is the Crypto exchange Kraken. Kraken recently listed a job for senior corporate and securities counsel while specifying that “public company reporting experience” is a preferred skill for candidates. In June 2021, Kraken announced its intention to go public.

At this point, no decision has been made and we’re fully focused on scaling our business, filling key roles, and making sure we’re giving clients the best experience and products in a time of unprecedented growth.

These moves are expected to push most cryptos including XLM to new All-time Highs.

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