Kraken, known as Payward Inc., is preparing to go public in the first quarter of 2026.
According to a Bloomberg report released on Friday, the crypto exchange is capitalizing on President Donald Trump’s more favorable regulatory environment.
After facing delays due to regulatory challenges, Kraken is moving forward with its plans. In response to Bloomberg, the company remains committed to transparency and will continue prioritizing financial disclosures. It also emphasized that pursuing public markets would be in the best interest of its clients, partners, and shareholders.
Regulatory challenges and Kraken’s progress
The process of a Kraken IPO had long been considered, yet regulatory actions taken by the previous administration became impediments. The Securities and Exchange Commission (SEC) filed accusations against the company regarding its operations as an unregistered securities exchange and broker-dealer.
In November 2023 the SEC filed charges against Kraken for its crypto-staking offerings because the commission regarded them as unlawful securities transactions. Kraken reached an agreement with authorities through a settlement worth $30 million, which led to discontinuing its staking services in the U.S.
The situation has now changed. On March 3, Kraken announced that the SEC agreed to drop its lawsuit without penalties or required business modifications. The SEC did not provide a statement, but its decision aligns with a broader pattern. Over the past month, the agency has dropped or paused at least nine crypto-related cases, including those against Coinbase and Binance.
The shift in regulatory enforcement began after Gary Gensler stepped down as SEC chairman in January. President Trump had previously stated he would replace him with Paul Atkins, a former SEC commissioner known for his crypto-friendly stance. Until Atkins is confirmed, Mark Uyeda is serving in the role.
Trump’s influence and market developments
President Trump’s pro-digital currency position had substantial impacts on the industry outlook. Trump’s presidential win, along with his campaign activities, produced Bitcoin’s highest price point on Inauguration Day before the market reaction to tariffs caused a price decrease.Trump assembled 24 crypto industry leaders to conduct a White House meeting, with Kraken Co-CEO Arjun Sethi among the attendees. The upcoming event will concentrate on digital asset regulatory policies and their predicted future developments.
Kraken’s financial performance has benefited from the recent crypto market surge. The exchange reported $1.5 billion in revenue for 2024, more than double the previous year. Adjusted earnings reached $380 million. For comparison, Coinbase generated $6.6 billion in revenue during the same period.
Kraken’s growth and the expanding IPO market
According to CoinMarketCap, Kraken is currently the tenth-largest exchange by trading volume. The company has expanded into new markets and introduced additional products to strengthen its position before going public.
Additional activity is noticeable throughout the crypto market for initial public offerings. According to reports, multiple cryptocurrency companies, including Circle, BitGo, Gemini, and Bullish, are seeking to pursue IPOs. Bloomberg reports that Kraken has received about $27 million in initial capital allocation since its founding in 2011.
The company will obtain significant financial resources through a public listing, increasing its capability to fight against larger competitors.
Meanwhile, Kraken’s co-founder Jesse Powell has made headlines for his financial contributions to political campaigns. He was a major donor to Trump’s election efforts, supporting the administration’s supportive stance on cryptocurrency.