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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Cryptocurrency exchange Kraken is preparing for an initial public offering (IPO) as early as the first quarter of 2026, taking advantage of what appears to be a more favorable regulatory climate under President Donald Trump.
Kraken’s IPO plans are not yet final and could change in the coming months, Bloomberg reported, citing sources familiar with the matter, who requested anonymity due to the private nature of the discussions.
Kraken reportedly said it remains committed to transparency, citing its history as one of the first exchanges to publish proof-of-reserves.
“We recently disclosed 2024 financial highlights to be more transparent about our business… We’ll pursue public markets as it makes sense for our clients, our partners, and shareholders,” the company stated.
Kraken’s IPO Plans Stalled by Biden-Era Regulatory Hurdles
Kraken has long considered going public, but regulatory challenges under the Biden administration stalled its ambitions.
The exchange faced enforcement actions from the U.S. Securities and Exchange Commission (SEC), settling one case while successfully fighting another, which was later dropped without charges or penalties.
The shift in political leadership has brought renewed optimism for the crypto industry.
Unlike his predecessor, Trump has been vocal in his support for digital assets.
He is set to meet with over two dozen industry leaders, including Kraken Co-CEO Arjun Sethi, at the White House on Friday.
Kraken has seen significant growth in recent years. The company reported revenue of $1.5 billion in 2024, more than doubling from the previous year, with adjusted earnings of $380 million.
While it still lags behind Coinbase, the largest U.S. exchange, which posted $6.6 billion in revenue last year, Kraken remains a key player in the sector.
Ranked as the tenth-largest exchange by trading volume on CoinMarketCap, Kraken has been expanding its global presence and introducing new products.
It is among several crypto firms exploring IPOs as market conditions improve.
Others considering public listings include stablecoin issuer Circle, digital asset custodian BitGo, and exchanges such as Gemini and Bullish.
Founded in 2011, Kraken has raised approximately $27 million in primary capital, making its potential IPO a significant milestone in its evolution.
SEC Agrees in Principle to Drop Lawsuit Against Kraken
As reported, the SEC has agreed in principle to dismiss its lawsuit against cryptocurrency exchange Kraken, according to a statement from the company.
The case will be dropped with prejudice, meaning it cannot be refiled. Kraken will not admit to any wrongdoing, pay penalties, or change its business operations.
The SEC sued Kraken in November 2023, alleging it operated as an unregistered securities exchange, broker, clearing agency, and dealer.
The regulator also accused the company of commingling customer and corporate funds.
Kraken contested the charges, leading a federal judge to rule the case had enough merit to proceed to trial.
Meanwhile, the Australian Securities and Investments Commission (ASIC) has won a court case against Bit Trade, the operator of Kraken in Australia, for failing to comply with design and distribution obligations.
The Federal Court ruled that Bit Trade had breached the Corporations Act by offering a margin trading product without a target market determination, violating regulatory requirements since October 2021.
