Just days ago, momentum was building across the digital asset sector as multiple crypto firms were reportedly preparing to go public in the U.S.—a hopeful sign of renewed confidence under what had been viewed as a more crypto-tolerant Trump administration. But that optimism appears to be fading fast.
The introduction of sweeping tariffs by President Trump has not only triggered a steep sell-off in equity markets but also severely disrupted the IPO pipeline. According to Austin Campbell, CEO of payments firm WSPN and adjunct professor at NYU Stern, in a series of comments to The Block, the prospects for crypto firms going public have taken a sharp downturn.
“All of them will pull,” Campbell said.
“You can’t IPO into a market collapsing like 2008.”
Even outside of crypto, tech companies like Klarna have already shelved IPO plans due to the deteriorating market environment. For the crypto sector—which has historically seen only a handful of successful public listings, most notably Coinbase—such market instability represents a major deterrent. The SPAC boom that once promised a shortcut to public markets for firms like Bullish and Circle now seems increasingly uncertain.
What makes the situation more fragile is that many crypto companies remain in a growth phase, heavily reliant on investor sentiment and market conditions to secure valuations. With the current wave of geopolitical risk and market volatility, even firms that were previously eyeing a market comeback may now hit pause indefinitely.
Circle Caught in the Crosshairs as Tariff Fears Rattle IPO Pipeline
Stablecoin issuer Circle may be the latest crypto heavyweight to reconsider its path to the public markets, as uncertainty surrounding President Trump’s sweeping tariff policy deepens.
Earlier this week, Circle filed a Form S-1 with the U.S. Securities and Exchange Commission—typically a formal step toward a public listing. But within days, speculation began swirling that the firm is already rethinking its plans.
According to The Wall Street Journal, Circle executives are reportedly in wait-and-see mode, monitoring market conditions before making a final decision. Betting activity on Polymarket has also reflected growing skepticism, with the odds of a Circle IPO happening this year dropping sharply.
Investor appetite is a central part of the problem. With inflation fears resurfacing and macroeconomic headwinds growing stronger, riskier assets—such as shares in crypto startups—are quickly falling out of favor. Even Coinbase, the sector’s most visible public company, has seen its stock drop nearly 8% as of press time.
At the heart of the turbulence is Trump’s newly announced tariff framework, set to impose a baseline 10% tax on all imports beginning April 5, with “reciprocal” rates rising as high as 50% for nations with steep trade imbalances with the U.S. While the policy has drawn praise from some nationalist circles, economists are nearly unanimous in their warning: the move could destabilize global trade and finance, with ripple effects likely to choke economic growth and trigger recessionary pressures.
“This is the biggest policy mistake in 100 years,” said Campbell.
For crypto firms hoping to debut on the public stage, that warning may be enough to dim the IPO spotlight for the foreseeable future.
Quick Facts
- President Trump’s new tariffs have led to increased market volatility, causing companies to reconsider IPO plans.
- Klarna, StubHub, and Chime are among the firms that have postponed their IPOs due to unfavorable market conditions.
- Cryptocurrency companies like Circle are reassessing public listing strategies amid economic uncertainty.
- The broader IPO market is experiencing a slowdown as trade tensions impact investor confidence.
