Crypto exchange Bullish has canceled its proposed merger with Far Peak Acquisition Corporation. In a statement on its website, Bullish stated the $9 billion deal with the special-purpose acquisition firm wouldn’t go on as planned.
The deal was called off on a mutual agreement with the two firms, joining a growing list of SPAC deal breakdowns in recent times. A breakthrough in the deal would have seen Bullish become publicly traded on the New York Stock Exchange.
Bullish is a blockchain-based cryptocurrency exchange. It was launched in May 2021 and is a subsidiary of Block.One, a blockchain software company.
SEC’s Strict Regulations Hinder Merger
In a press statement, the chairman and CEO of Bullish, Brendan Blumer, noted that the firm’s intention to become a publicly traded company is taking longer than speculated. He also mentioned that the stalled deal resulted from the new asset framework implemented by the U.S. Securities and Exchange Commission (SEC).
SEC has implemented stricter rules on exchanges since the FTX capitulation and is working tirelessly to see that a repeat of the saga is not seen in the industry again. Blumer stated that both companies could not meet the requirements of the SEC due to the new bindings on industry-specific disclosures and accounting complexity.
Far Peak declared that it does not intend to seek new partners due to time constraints and will wind up its operations by March 7, 2023. The new SEC regulations have proved difficult to attain for many SPAC firms lately.
Bullish Joins Increasing SPAC Merger Meltdown
Bullish’s now-scrapped merger has joined a list of recent crypto SPAC deals to fall through due to accounting issues with the SEC raised by the new asset class. Circle Internet Financial canceled its planned merger with Concord Acquisition Corporation, a deal valued at $9 billion.
The deal between the social-investing network eToro and FinTech Acquisition Corporation was also put to bed in early July. The deal was also halted by new SEC regulations.
