Crypto firms struggle to go public due to SEC scrutiny in the wake of FTXs' collapse

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(Kitco News) - Amid the collapse in valuation witnessed in the crypto market over the course of 2022, the U.S. Securities and Exchange Commission (SEC) has increased its scrutiny of crypto companies trying to go public in an effort to help protect investors.

As was first reported in the Wall Street Journal, several prominent crypto firms, including Circle Internet Financial, which is the issuer of the stablecoin USD Coin (USDC), the multi-asset investment company eToro Group Ltd, and the digital asset exchange Bullish Global all failed to secure the required approvals from the SEC to go public in recent months.

All three firms attempted to get listed on the stock exchange via mergers with special-purpose acquisition companies (SPACs) but had their plans thwarted as market turbulence and heightened regulatory checks brought an end to the SPAC boom in late 2022.