Exodus, a well-known provider of cryptocurrency wallets, has announced that its planned listing on NYSE American will be delayed due to a review by the U.S. Securities and Exchange Commission (SEC). The company received notification from NYSE American that the SEC is still in the process of reviewing their registration statement, which became effective in April. As a result, Exodus has decided to postpone its uplisting from over-the-counter trading, and its Class A Common Stock will continue to trade on OTCQX for now. The company had anticipated that the uplisting would bring long-term value to investors by expanding its shareholder base and increasing stock liquidity. However, in light of the ongoing SEC review, Exodus will reconsider listing on a national securities exchange at a later date. CEO JP Richardson expressed surprise and confusion at the last-minute decision, emphasizing that Exodus has been transparent and responsive throughout the review process. The company hopes for a swift resolution from the SEC and will continue to prioritize providing excellent service and value to customers and shareholders.
In related news, two other cryptocurrency wallet providers, ACINQ’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet, have stopped offering their services to customers in the United States. This decision comes in response to increased regulatory scrutiny on self-custodial wallet providers. Concerns have arisen regarding the classification of these providers as legitimate money service businesses, following enforcement actions against Consensys and Samourai Wallet. The regulatory focus on self-custodial wallets is due to concerns about potential money laundering activities. Consensys, the creator of MetaMask, received a Wells notice from the SEC, while the co-founders of Samourai Wallet were arrested on charges of money laundering. The industry is closely monitoring these developments as regulatory agencies crack down on cryptocurrency-related activities.