Japanese exchange Coincheck will be listed on Nasdaq. Will the Trump administration give the green light to more crypto companies' IPOs?

Under the Trump administration, as the regulatory framework is expected to become clearer, will the IPO process of crypto companies accelerate?

Author: Weilin, PANews

The traditional US capital market is about to welcome a new crypto player.

On November 13, Japanese securities firm and crypto exchange operator Monex Group announced that its subsidiary Coincheck Group BV (CCG) had its registration statement (Form F-4) filed with the US Securities and Exchange Commission (SEC) become effective on November 12, meaning that Coincheck will go public on Nasdaq through a SPAC, and is expected to list as early as December 10, becoming the first Japanese crypto exchange to list on Nasdaq.

This news has attracted widespread market attention. Under the Trump administration, as the regulatory framework is expected to become clearer, will the IPO process of crypto companies accelerate? In its latest newsletter, ARK Invest is optimistic that Trump's return to the White House could open the IPO window for digital asset companies and bring a clear regulatory environment. ARK Invest pointed out: "This may include reopening the IPO window for digital asset companies like Circle and Kraken."

Under the expectation of policy changes, there are reports that investment bankers from JPMorgan Chase, Goldman Sachs and Morgan Stanley have started reaching out to crypto companies, indicating that investment banks are gradually warming up to the crypto sector.

Expected to List on Nasdaq as Early as December 10

According to the announced schedule, Coincheck's IPO this time will be realized through a merger with Thunder Bridge Capital Partners (THCP). The special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV (THCP) will hold a shareholder meeting on December 5, and the merger is expected to be implemented around December 10. The stock of Coincheck Group BV (CCG) (stock code: CNCK) is expected to start trading on Nasdaq the next trading day after the merger is completed.

As early as March 2022, Coincheck announced that it would merge with THCP to achieve an IPO, originally planned to be completed in the second half of that year, but later experienced three contract changes, in May 2023, May 2024 and October 2024, before finally obtaining SEC approval.

Coincheck, a Japanese crypto exchange, was founded in 2012 and began providing crypto trading services in 2014, becoming a leading exchange in the Japanese crypto market by 2017. In January 2018, Coincheck suffered a hacking attack, resulting in the theft of $530 million worth of NEM (XEM) tokens, which became one of the largest hacking thefts in crypto history. The exchange had to compensate the affected users, which had a significant financial impact.

In 2018, Japanese brokerage firm Monex Group acquired Coincheck, restructured the company, and strengthened its security to regain user trust.

On the X platform, HARA, the CFO of the Japanese Internet of Things encryption project Jasmy, stated on X that "Coincheck's listing on the Nasdaq in the United States is an announcement with huge potential, as it can stimulate cryptocurrency trading through the capital of the stock market and become a place for creating many entrepreneurs."

The Trump administration may "green light" IPOs for crypto companies, and investment banks are in contact with crypto companies

In the United States, several crypto mining companies and the well-known crypto exchange Coinbase have already gone public on the stock exchanges. This has set a precedent for crypto companies to transform into publicly traded companies, but there are still some crypto companies that are being delayed by the SEC.

The most tortuous listing belongs to Circle, the issuer of the USDC stablecoin, which began its listing journey in 2021 but ultimately saw its dream shattered in the bull market. It is reported that Circle secretly submitted its IPO application in January of this year. However, according to a report by Barron's in June, the SEC has reservations about Circle's core product, which may delay or affect the company's listing process. This stablecoin issuer also moved its headquarters to the United States in May, which is believed to be to enhance market confidence. However, according to Barron's, the SEC is concerned about the risks of stablecoins. The regulator remains cautious about these assets, especially as their market continues to grow.

Another major crypto exchange, Kraken, is also preparing for an IPO. According to a Bloomberg report in June, the company raised $100 million in a pre-IPO funding round, indicating that investors are confident in its future. However, Kraken's listing will still largely depend on regulatory support and legislative progress.

The inauguration of the new US government is expected to bring about a shift in crypto regulatory policy.

Jay Clayton, the former chairman of the US SEC, recently pointed out that the US Congress may pass legislation to regulate cryptocurrencies after Trump took office. Clayton said he supports easing the regulatory burden to encourage companies to go public, hinting that public policy will undergo widespread changes, which is what the crypto industry is currently hoping for, for which they have spent huge sums to influence the presidential election this month.

On November 13, ARK Invest optimistically stated in its latest newsletter that Trump's return to the White House could allow digital asset companies like Circle and Kraken to go public and achieve regulatory clarity. ARK Invest wrote, "Possibilities include reopening the IPO window for digital asset companies like Circle and Kraken." The company pointed out that potential legislative reforms, such as the Financial Innovation and Technology Act (FIT21), could clarify the regulatory framework for stablecoins and digital assets. In addition, the asset management company expects the "enforcement-focused regulation" approach of SEC Chairman Gary Gensler to end, which could create a more competitive environment for crypto companies.

Some industry insiders have also expressed their views on the possibility of the IPO window. Matthew Kimmell, an analyst at crypto asset management firm CoinShares, pointed out that the Trump administration may nominate leaders more favorable to crypto assets based on its pro-digital asset rhetoric, which will affect the prospects of crypto IPOs, especially changes in SEC leadership and the regulatory framework it has established. Haseeb Qureshi, a partner at San Francisco-based crypto venture capital firm Dragonfly Capital, said the post-election environment should be better for crypto IPOs.

According to The Information, as the IPO prospects for the crypto industry look promising after the US presidential election, investment bankers from JPMorgan Chase, Goldman Sachs and Morgan Stanley have started meeting with crypto companies. This is a stark contrast to the past two years, when many Wall Street banks considered crypto companies too risky and were unwilling to take them on as clients.

Previously, industry rumors had it that companies like Circle Internet Financial, Kraken, Fireblocks, Chainalysis and eToro could go public in the next one or two years. Although these companies have been rumored to go public for months, there has been no substantial progress. Investment banking advisors say that the steady plan for crypto companies to go public in 2025 or 2026 is gradually taking shape.

Currently, the list of potential crypto IPOs includes crypto custodian Anchorage Digital, blockchain and staking infrastructure company Blockdaemon, crypto custodian BitGo, crypto data analytics firm Chainalysis, stablecoin issuer Circle, crypto brokerage FalconX, crypto custody technology provider Fireblocks, crypto exchange Kraken, crypto wallet provider Ledger, and Bitcoin financial services company NYDIG, among others.

Disclaimer: As a blockchain information platform, the articles published on this site only represent the personal views of the authors and guests, and are not related to the position of Web3Caff. The information in the articles is for reference only and does not constitute any investment advice or offer, and please abide by the relevant laws and regulations of your country or region. 'PANews' is translated into 'PANews'. 'crypto exchage' is translated into 'crypto exchange'. 'Bit' is translated into 'Bit'. 'Block' is translated into 'Block'. 'Circle' is translated into 'Circle'. 'TRON' is translated into 'TRON'. 'Dai' is translated into 'Dai'. 'NEM' is translated into 'NEM'. 'Amp' is translated into 'Amp'. 'NKN' is translated into 'NKN'. 'HT' is translated into 'HT'. 'XEM' is translated into 'XEM'. 'OP' is translated into 'OP'. 'ENS' is translated into 'ENS'. 'AR' is translated into 'AR'. 'KDA' is translated into 'KDA'. 'JASMY' is translated into 'JASMY'. 'ONT' is translated into 'ONT'. 'AMP' is translated into 'AMP'. 'USDC' is translated into 'USDC'. 'RON' is translated into 'RON'. 'ONG' is translated into 'ONG'. 'Dragonfly Capital' is translated into 'Dragonfly Capital'. 'Kraken' is translated into 'Kraken'. 'Coincheck' is translated into 'Coincheck'.