Author: Chimamanda Marcel

Peter Thiel-backed cryptocurrency exchange Bullish is anticipating its debut in the second quarter of 2022 after regulatory delays in its merger agreement with Far Peak Acquisition Corp late last year. 

The merger was aimed to establish Bullish as a publicly-traded company in the New York Stock Exchange with a pro forma equity value of $9 billion at $10 per the company’s share.

Bullish Extends March Deadline to May

As the partnership continues to await approval from the U.S. Securities and Exchange Commission (SEC), Bullish extended the deadline for the  $9 billion deal with Far Peak Acquisition Corp. The agreement, slated for March, has been moved to May due to regulatory delays. 

Tom Farley, the chief of Far Peak who previously served as president of the New York Stock Exchange, commented on how difficult it has been to close the deal. 

“Since July we’ve been working on a number of ambitious promises and we have achieved them all with the exception of closing the SPAC transaction,” he said.

Farley further hinted that the exchange grew more quickly than any other crypto platform within a period of six months. 

Bullish has obtained authorization to operate in  40 jurisdictions in the Asia Pacific, as well as Latin America, Europe and Africa. The company allows both institutions and retail customers to trade cryptocurrencies such as BITCOIN, ETHER, EOS and USDC. 

The exchange was launched in November by Block.one with backing from billionaire investors Peter Thiel and Richard Li.

Not the First

Meanwhile, Bullish is not the only crypto exchange that has been stalled  from merging with SPACs due to regulatory issues. Other companies such as stablecoin issuer Circle and Israeli social trading company eToro Group have faced similar challenges in the past. 

SPAC is a special purpose acquisition company focused on bringing leading financial and fintech companies to the public.

The United States Treasury Department has launched a new crypto education campaign to create awareness among the investing public about the potential risks associated with cryptocurrencies.

U.S. Treasury to Provide Crypto Education

The initiative will focus on those who have limited access to the mainstream financial services, as many of them invest in crypto assets without having enough knowledge about how crypto works.

The Treasury’s Financial Literacy Education Commission is tasked with providing crypto educational learning resources as well as organizing the outreach to teach them how cryptocurrency works and what makes it different from other digital assets.

“We’re hearing more and more about investors and households who are purchasing crypto assets, and we recognize the complexity of how some of these assets operate,” Nellie Liang, the Treasury undercover for domestic finance, said in an interview.

In line with the increasing concerns among financial regulators that crypto assets could constitute risks to the financial system as they grow in popularity, the Treasury Department believes that creating more awareness could help combat such risks.

The Treasury’s education unit consists of 20 different agencies such as the Securities and Exchange Commission (SEC). Gary Gensler, the SEC chairman, referred to the crypto industry as the “wild west” of finance “rifled with fraud, scams and abuse.”

Biden Issues Executive Order on Crypto

Meanwhile, the crypto education campaign comes just a few days after U.S. President Joe Biden issued an executive order to all  government agencies in the country asking them to develop policy recommendations centered on protecting U.S. investors, consumers and businesses engaging in the cryptocurrency industry.

To alleviate the risks posed by misuse of digital assets,  crypto platforms, exchanges and intermediaries whose services may increase the risks of financial instability should be forced to comply with the financial watchdogs and regulatory standards that rule the market infrastructure and financial institutions with the traditional principle of “same business, same risks, same rules.”

The Biden administration also believes that creating responsible payment platforms would help reinforce the United States leadership in the global financial system as well as maintain its position as world leader.