Wall Street Urges IPO Hopefuls to Trim Valuations in Weak Market
Stablecoin issuer Circle Internet Group Inc. filed publicly for a listing on Tuesday, joining a hopper of companies including Klarna Group Plc and MNTN Inc. hoping to go public in the coming weeks and months.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
Wall Street Joins Consumer Advocates to Call for Edit to GENIUS Act on Stablecoins
Wall Street bankers are hammering away at some provisions of the new U.S. stablecoin law that was hailed by President Donald Trump and the crypto sector as a huge first step toward establishing a fully regulated U.S. industry, and the banks are joined by unusual bedfellows from the consumer-advocate world in sounding alarms. Hoping to revise and cut provisions that might threaten aspects of the current financial system, the American Bankers Association and other bank lobbying groups aligned in a letter this week with Americans for Financial Reform — usually a staunch opponent of Wall Street's policy aims — and the National Consumer Law Center. One provision of the stablecoin law known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act lets a stablecoin-issuing subsidiary of a state-chartered uninsured depository institution run money-transmission and custody services nationwide, which the bankers argue bypasses existing state licensing and oversight. Their letter asked several key U.S. senators to insist that whole section be erased entirely. "Ignoring state law in this regard invites regulatory arbitrage, allowing certain uninsured depository institutions special privileges to operate across state lines as federally insured banks currently do, but without the panoply of regulatory and supervisory requirements, or limitations on preemption applicable to those institutions," the August 13 letter argued. The bank lobbyists, also cooperated in a separate effort to protect deposits and other core aspects of their businesses from the GENIUS Act, arguing in another letter to lawmakers this week that the law leaves an opening for crypto firms to offer returns on stablecoins. While the law bans stablecoin issuers themselves from offering interest or yield, it doesn't stop the issuers' affiliates or exchanges from doing so indirectly. The bankers fear a massive loss of deposits and money-market fund activity from the resulting rivalry stablecoins might offer. "Congress must protect the flow of credit to American businesses and families and the stability of the most important financial market by closing the stablecoin payment of interest loophole," according to the groups, including the ABA, Bank Policy Institute, Financial Services Forum and others. Banks turn deposits into loans, so the lack of deposits threatens necessary U.S. lending. Faryar Shirzad, the chief policy officer at U.S. crypto exchange Coinbase, criticized the banks' position in postings on social media site X. "Congress shouldn't be in the business of passing legislation that takes away consumer choice and the opportunity for the average person to earn returns on their hard-earned dollars," he wrote, additionally arguing that the $6 trillion figure on what desposits may be at stake is overblown. "Let's play along for a second," Shirzad added. "If customers really would move $6T away from banks into stablecoins, what does that say about what value consumers feel like they're getting from their banks?" The GENIUS Act was signed into law by President Trump, but the bigger and more complex legislation to regulate U.S. crypto markets is still pending. That future bill, which already passed the House of Representatives as the Digital Asset Market Clarity Act, could still overhaul provisions of the stablecoin law, even before that new law is converted into rules by the U.S. financial regulators. That's what the bankers are advocating, alongside their temporary customer-advocate allies. Adds comment from Coinbase's Faryar Shirzad. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
Ethereum surges to near record as investors bet on 'biggest macro trade' of the next decade
Ethereum (ETH-USD) prices rose to near record levels as Wall Street grows increasingly bullish on the crypto play. The world's second-largest cryptocurrency by market cap climbed 0.7% on Thursday to hover above $4,700 per token, just shy of its 2021 record level. "We have stated multiple times we believe Ethereum is the biggest macro trade over the next 10-15 years," Fundstrat head of research Tom Lee wrote in a note on Wednesday. Lee noted the majority of Wall Street crypto projects and stablecoins, or digital tokens backed by assets like the US dollar, are being built on the ethereum infrastructure. Ether, the native token of ethereum, is up more than 50% since the GENIUS Act legislation, which creates guardrails for the stablecoin industry, was passed last month. Additionally, the Securities and Exchange Commission's recent "Project Crypto" announcement, an initiative to modernize the agency and establish clear regulations around the digital asset industry, has also fueled the rally in ethereum. Fundstrat sees ETH hitting prices moving as high as $15,000 by year-end. The token is up 16% over the past five sessions versus bitcoin's (BTC-USD) rise of 4%. Some companies have increasingly been raising capital to add ethereum to their balance sheets in a similar fashion to Strategy's (MSTR) bitcoin corporate treasury play. Read more: Can you buy crypto with a credit card? See the pros and cons. Inflows into ethereum by such digital asset treasury companies have supported higher prices, Spencer Hallarn, global head of over-the-counter trading at crypto investment firm GSR, told Yahoo Finance. "This positive price momentum has reinforced further investor enthusiasm and flows into the space," he added. For example, BitMine Immersion Technologies (BMNR), chaired by Fundstrat's Tom Lee, announced plans on Tuesday to sell up to another $20 billion worth of stock to increase its holdings of ethereum. The company's goal is to eventually acquire 5% of the world's outstanding ETH tokens. BitMine shares are up roughly 80% over the past five days. Meanwhile, gaming and sports betting company SharpLink Gaming (SBET) and blockchain tech firm BTCS (BTCS), both of which are pursuing similar strategies, are also up 8% in the past five sessions. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Yahoo
2 days ago
- Yahoo
Winklevoss twins' crypto company Gemini files for IPO
Another crypto company is headed for the public markets. This time, it's Gemini Space Station Inc., the New York-based crypto exchange and custodian bank founded by billionaire twins Cameron and Tyler Winklevoss. The outfit, which plans to list on the Nasdaq Global Select Market under the symbol GEMI, was founded in 2014 and operates as an exchange and custodian that offers a number of products and services, including a U.S. dollar-backed stablecoin and a credit card that offers rewards in crypto. The company's S-1 document, which was filed Friday after markets closed, provides a look at its finances. The upshot: Gemini appears to have widening net losses. The company reported a net loss of $158.5 million on $142.2 million in revenue in 2024. Net losses in the first six months of 2025 havw already exceeded that number. Gemini reported a net loss of $282.5 million on $67.9 million in revenue in the six months ending June 30. Gemini is the latest crypto company to turn to the public markets as the regulatory environment has eased and the Trump administration has embraced digital currencies and other crypto assets. In June, Circle Internet Group raised $1.2 billion in an IPO. The company, one of the world's largest issuers of USDC, a stablecoin pegged to the U.S. dollar, had a blockbuster debut with its stock trading 168% above its IPO price of $31 set the previous day. On Monday, despite higher revenue than a year earlier, Circle reported a quarterly loss due to one-time costs associated with that June public offering. Earlier this month, crypto exchange Bullish, which also owns media outlet CoinDesk, raised $1.1 billion in its IPO. Bullish, led by former president of the NYSE Tom Farley, saw its shares more than double from its $37 IPO price to peak at $118.
