Galaxy is poised to list on a major US stock exchange, marking a significant development for crypto companies seeking access to the US market, after the SEC “declared effective” its registration statement.
The US Securities and Exchange Commission’s (SEC) declaration allows Galaxy to move forward with its plans to list on the Nasdaq Global Select Market, a major milestone in the company’s years-long effort to secure a US listing. Galaxy’s registration statement being declared effective is a crucial step towards the listing, indicating that the company has met the necessary regulatory requirements.
A shareholder vote is scheduled for May 9 to approve a reorganization that would establish Galaxy as a new Delaware holding company, a necessary step for the US listing. If approved, the Nasdaq listing could be finalized by the end of the second quarter of the year, Galaxy CEO Mike Novogratz stated. The reorganization is a critical component of the listing process, and shareholder approval is required to proceed.
Galaxy has been listed on the Toronto Stock Exchange since 2018 and will continue to trade there even after its US listing is finalized. The company’s dual listing will provide continued access to Canadian investors while expanding its reach into the US market. Executives noted during Galaxy’s March 28 earnings call that they had recently submitted an amended S-4 filing in response to the SEC’s ninth round of comments, highlighting the prolonged and detailed review process.
The approval follows years of efforts by Galaxy to secure a US listing, previously hindered by regulatory resistance from the SEC. The recent approval is seen as a reflection of recent changes within the SEC, particularly a perceived shift away from previous hostility towards crypto companies as leadership has changed. The SEC’s changed stance is likely attributed to the new leadership, with the article noting that Gary Gensler is “no longer leading the agency.”
The trend of crypto firms accessing US public markets is accelerating, demonstrated by crypto wallet provider Exodus recently listing on the NYSE American and new IPO filings from companies like Circle and eToro. The move is expected to open additional opportunities for American investors to gain exposure to cryptocurrency-related businesses via public equity markets. As 10T Holdings founder Dan Tapiero noted at DAS last month, “American investors love owning equity,” suggesting a growing demand for crypto-related investment opportunities.