Crypto Wallet Provider Exodus Delays NYSE Listing Due to SEC Review

Exodus Movement, a prominent crypto wallet company, has announced a delay in its planned listing on NYSE American, the sibling market of the New York Stock Exchange. The company revealed the development in a late Wednesday press release, citing the ongoing review by the U.S. Securities and Exchange Commission (SEC) as the reason for the delay.NYSE American informed Exodus on Wednesday that the SEC staff was still in the process of reviewing the company’s registration statement, which had become effective at the end of April.

The unexpected update from the SEC has prompted Exodus to postpone its uplisting from over-the-counter (OTC) trading.As a result, Exodus’ Class A Common Stock will continue to trade on OTCQX for the time being.Exodus anticipated that the uplisting would create long-term value for investors by expanding the company’s global shareholder base and enhancing stock liquidity, as highlighted by CEO JP Richardson in a tweet earlier this week.Big news! Exodus stock $EXOD starts trading on the NYSE American this Thursday, May 9th.This significant milestone paves the way to creating long-term value for our investors by expanding our global shareholder base and boosting stock liquidity.LFG!— JP (Exodus) (@jprichardson) May 6, 2024However, with the SEC review ongoing, the company has decided to reconsider listing on a national securities exchange at a later date, once the regulatory process is complete.Expressing surprise and confusion regarding the last-minute decision, Richardson emphasized that Exodus had been fully transparent and responsive throughout the review process.“We remain hopeful that the SEC will follow through on its commitment to treat us as the law intends,” he said.“Exodus has been fully transparent and responsive throughout this process and we expect a swift resolution in this matter. In the meantime, we will continue to provide the best possible service and value for our customers and shareholders.”

Exodus’ move to postpone its common stock listing on the NYSE American comes as ACINQ’s Phoenix Wallet and zkSNACKs’ Wasabi Wallet have discontinued their services for customers in the United States. The move came as a response to the recent crackdown on self-custodial cryptocurrency wallet providers by regulatory agencies.Both companies have expressed concerns about the classification of self-custodial wallet providers as legitimate money service businesses following actions taken against Consensys, the creator of Metamask, and crypto mixer Samourai Wallet.The recent regulatory focus on self-custodial wallets stems from concerns that they may facilitate illicit activities such as money laundering.Consensys, the creator of MetaMask, received a Wells notice from the SEC on April 10, which warned of potential enforcement actions related to its MetaMask Swaps and MetaMask Staking products.In another incident, the co-founders of Samourai Wallet, a cryptocurrency mixer, were arrested on charges of money laundering brought by the U.S. Justice Department and other agencies. Samourai Wallet CEO Keonne Rodriguez and chief technology officer William Hill are facing charges of conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.