Online brokerage Webull decided to cut its crypto offerings because of the unfavorable regulatory landscape in the US as it waits for approval to list on Nasdaq via a special purpose acquisition company (SPAC), Bloomberg News reported on Feb. 28.

The company said that its previous attempt to carry out an initial public offering (IPO) was likely blocked due to its crypto-related services. Webull has attempted to carry out several initial public offerings (IPOs) but failed on each occasion.

Webull US CEO Anthony Denier said:

“For different reasons we were unsuccessful … I can name a few, and I think the latest one is crypto exposure. The [SEC has] not been friendly, which is widely known.”

End of crypto services

According to Bloomberg, Webull sold its digital asset business and discontinued its crypto offerings at the end of the third quarter of 2023 because of the SEC’s unclear rules for registered broker-dealers that work with crypto.

The firm continues to offer crypto buying and selling in partnership with Bakkt through its Webull Pay App, which is described as a separate business in the firm’s support pages.

However, despite Webull’s concerns around SEC regulation, at least one retail brokerage with crypto services succeeded in launching an IPO.

Webull’s major competitor, Robinhood, has offered crypto trading features since 2018 and successfully completed its IPO in 2021.

Listing via SPAC

Webull currently plans to list on Nasdaq via a $7.3 billion special purpose acquisition company (SPAC) deal with SK Growth Opportunities Corp, a blank check company.

Though there are various advantages, SPACs are broadly considered less demanding than IPOs and notably allow an upfront valuation.

According to a press release, the deal will see ordinary SKGR stock begin trading under a new ticker label, while the combined company will take on the name “Webull Corporation.”

The deal is not yet complete but awaits shareholder and regulatory approval.

SKGR shares were trading at $11.11 as of press time — up 1.18% over the last 24 hours.