Kraken's Parent Company Puts IPO Plans on Hold Amid Market Volatility

Payward, the parent company of Kraken, a leading cryptocurrency exchange, has suspended its plans for an initial public offering (IPO) until market conditions improve. According to sources familiar with the matter, the decision was made due to the current state of the market. The total market capitalization of the crypto industry has dropped significantly since November, from $3.2 trillion to $2.5 trillion as of Wednesday.

The news comes as regulatory efforts are underway in the United States. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued guidance on how federal securities law applies to crypto assets. This move is seen as a step towards developing a clearer regulatory framework for the industry.

The guidance introduced by the SEC and CFTC includes definitions of digital collectibles, stablecoins, and digital tools, among others. It also clarifies that most crypto assets are not themselves securities. The joint agency action complements congressional efforts to turn a crypto market structure framework into law.