Kraken eyes mega funding round amid IPO speculation

abdelaziz Fathi

US-based cryptocurrency exchange Kraken is reportedly exploring a funding round to raise over $100 million in preparation for an initial public offering (IPO). According to sources cited by Bloomberg on June 6, the funding round is expected to take place by 2025.

Kraken has not confirmed specifics regarding the IPO but stated it is “always exploring strategic paths” to support global crypto adoption. The exchange’s consideration of an IPO follows Coinbase’s successful public listing in 2021, which marked the first time a crypto exchange went public in the United States. Kraken previously indicated it would pursue a direct listing rather than a special-purpose acquisition company if it opted to go public.

The exchange faces a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in November 2023. The SEC’s lawsuit against Kraken started last November and accuses the exchange of operating without proper registrations as a broker, clearinghouse, or exchange. The legal action follows a settlement earlier in the year about Kraken’s staking services, where similar registration issues were raised.

In a recent court filing, Kraken refuted the SEC’s claims by arguing that the cryptocurrencies listed in the SEC’s complaint should be classified as commodities rather than securities. This classification would exempt them from certain regulatory requirements under the SEC’s jurisdiction. Kraken’s defense hinges on the application of the Howey test, which is used to determine whether certain transactions qualify as investment contracts and therefore constitute securities under U.S. law.

Kraken’s latest filing criticizes the SEC’s broad interpretation of its powers, suggesting that expanding the SEC’s jurisdiction in such a way would “gut Howey by significantly expanding the SEC’s jurisdiction to a host of investment activities that were never delegated to the agency.” Kraken argues that any major changes to the U.S.’s financial regulatory structure should be determined by Congress rather than through court decisions.

Read this next

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.


Q2 2024’s Top 5 Cryptos to Buy: BlockDAG, Pepe, Toncoin, Solana and Render

Learn about 2024’s Q2 top 5 cryptos. Explore potential high-return and advancements of altcoins like BlockDAG, Pepe, Toncoin, Solana, and Render.

Fundamental Analysis, Tech and Fundamental, Technical Analysis

GBPCAD Technical Analysis Report 14 June, 2024

GBPCAD currency pair can be expected to fall further toward the next support level 1.7250, former strong resistance from last year.

Digital Assets

Binance acquitted of tax evasion in Nigeria, now faces AML charges

Nigeria has dropped tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, after the world’s largest cryptocurrency exchange appointed a local representative to handle court processes related to the allegations.

Digital Assets

Trezor launches new hardware wallet ‘Safe 5’ with fresh security features

Crypto hardware wallet manufacturer Trezor announced on Friday the launch of its latest flagship product, the Trezor Safe 5, featuring upgraded security to promote self-custody of digital assets.

Institutional FX

Tradeweb enhances RFQ trading in bonds and ETFs

“Clients can now leverage predictive analytics and data to unveil deeper insights at the list level, providing them with an unparalleled level of precision throughout every point of the RFQ trading process.”

Industry News

US repatriates $1.4B misappropriated 1MDB funds to Malaysia

1MDB was created to promote economic development in Malaysia, but instead it went to Hollywood, a superyacht, a Monet and Van Gogh, as part of a $4.5 billion money laundering scheme.

Crypto Insider, Web3

What’s New in Web3 in 2024

Is Web3 really the future of the internet? It certainly seems so. In 2024, the momentum behind decentralized technologies, blockchain, and token-based economies will be stronger than ever.