Jesse Powell, CEO of Kraken, has confirmed the company is not in a hurry to go public in the US, citing regulatory concerns.
Kraken’s cautious approach highlights the ongoing regulatory challenges faced by cryptocurrency exchanges in the US market, which could impact investor confidence.
Kraken’s leadership, including CEO Jesse Powell, has stated they are not rushing to pursue a public offering in the US. Concerns over regulatory obstacles and the need for a valuation exceeding $10 billion remain central to their cautious approach.
The absence of significant asset movement on-chain reflects the community’s acceptance of this cautious approach, indicating institutional confidence remains stable.
Kraken Valuation Concerns Stymie US IPO Plans
Kraken’s leadership, including CEO Jesse Powell, has stated they are not rushing to pursue a public offering in the US. Concerns over regulatory obstacles and the need for a valuation exceeding $10 billion remain central to their cautious approach. Powell remarked, “We would consider going public only if the company is valued at well over $10 billion.” – CoinGeek
Kraken has explored IPO possibilities but prioritized a conservative stance amidst the current climate. Powell highlighted his skepticism towards US regulators, indicating a strategic decision to hold off on a rushed US IPO.
Stakeholder Confidence Unshaken by IPO Delay
Powell’s comments sparked discussions among stakeholders about Kraken’s long-term strategy. The absence of significant asset movement on-chain reflects the community’s acceptance of this cautious approach, indicating institutional confidence remains stable.
Industry experts weigh regulatory implications, suggesting Kraken’s decision may stabilize existing market positions. Historical trends indicate that free from rushed decisions, such strategies sometimes protect against volatile regulatory landscapes, potentially benefiting users and the platform alike.
Coinbase Example Influences Kraken’s Conservative Approach
Coinbase’s 2021 direct listing highlighted potential risks associated with US IPOs, offering a precedent for Kraken. Regulatory pressures eventually affected trading premiums, making hard-learned lessons relevant for Kraken’s current stance.
Experts note that Kraken’s strategy aligns with market stability goals. With a focus on current analyses and prevailing regulatory challenges, Kraken’s cautious IPO timeline might protect its ecosystem, according to industry observers.
Jesse Powell, Co-founder & CEO of Kraken, expressed concerns, stating, “The SEC let FTX blow up just so they could kill the industry. You can’t look at what the SEC has done and not conclude that their goal is to destroy crypto in the US.” – CoinMarketCap
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