rewrite this title Kraken Plots Public Offering After SEC Agrees to Drop Lawsuit: Bloomberg – Decrypt

As U.S. regulators take a more favorable stance toward cryptocurrency, Bloomberg reports that Kraken’s parent company, Payward Inc., is preparing to launch an initial public offering in 2026.

If successful, the San Francisco-based exchange would become only the second publicly traded U.S. cryptocurrency exchange after Coinbase, which went public in April 2021. A Kraken spokesperson did not comment on a specific timeline, but told Decrypt that going public is indeed on its long-term roadmap.

“We recently disclosed 2024 financial highlights to be more transparent about our business, which is something we started by being first to publish proof of reserves and we’re going to continue to prioritize going forward,” the spokesperson told Decrypt. “We’ll pursue public markets as it makes sense for our clients, our partners and shareholders.”

While rumors of Kraken going public have circulated online for years, an unfavorable regulatory environment under the administration of former President Joe Biden and former SEC Chair Gary Gensler may have prevented the company from filing an IPO.

In November 2023, the U.S. Securities and Exchange Commission filed charges against Kraken, accusing its parent companies of operating the exchange as an unregistered securities exchange, broker, dealer, and clearing agency. The SEC also alleged that Kraken commingled customer assets with company funds, using customer accounts to pay expenses.

In November, the SEC filed a motion to dismiss Kraken’s key legal defenses, arguing the exchange had prior notice of potential securities law violations.

But with the election of pro-crypto President Donald Trump, regulatory tides are changing. Already since his inauguration, the SEC has moved to dismiss numerous investigations and lawsuits into crypto firms—including an agreement in principle to drop its lawsuit against Kraken. Following that move, it now appears that Kraken is again considering its future options.

Edited by Andrew Hayward