According to Blockworks, the regulatory landscape for the cryptocurrency industry is anticipated to shift following the recent election, potentially impacting companies like Exodus, a software wallet provider. Exodus CEO JP Richardson expressed dissatisfaction with the U.S. Securities and Exchange Commission (SEC) after the company's public listing was unexpectedly delayed in May. Richardson stated that Exodus had been transparent and responsive throughout the SEC's review process, making the delay surprising and confusing.
Elliot Chun, a partner at advisory firm Architect Partners, criticized the SEC's approach, describing it as lacking a clear framework and targeting every crypto company. An SEC spokesperson declined to comment on individual companies. Richardson, who supported Donald Trump, shared Exodus's story with the president-elect, hoping for a more favorable regulatory environment under the new administration.
Veronica McGregor, Exodus's legal chief, was involved in the Crypto4Harris group's efforts and expressed optimism about working with the incoming administration. She emphasized that cryptocurrency should not be a partisan issue and highlighted the need for a shift in regulatory attitudes and approaches. McGregor argued that trying to fit new technologies into outdated legal frameworks is counterproductive and harmful to business and innovation.
Exodus recently submitted a response to the SEC's latest comment letter and is awaiting further instructions. Despite the anticipated changes under Trump's presidency, Richardson acknowledged that SEC reforms would not occur immediately. He expects the administration to begin establishing a regulatory foundation aligned with campaign promises within the first year by bringing in the right experts.
The ongoing discussions around regulatory changes in the crypto industry underscore the challenges faced by companies like Exodus as they navigate evolving legal landscapes. The focus remains on ensuring that regulatory bodies adapt to new technologies and business models to foster innovation and growth.
