TechFlow reports, on February 19, former Coinbase CTO Balaji Srinivasan pointed out that IPOs and M&A paths for tech companies are becoming increasingly difficult, but the cryptocurrency sector may present new opportunities. Affected by the Sarbanes-Oxley Act, the number of U.S. publicly listed companies has decreased by half from its peak in 1999. Meanwhile, major tech M&A deals have been blocked under policies implemented by Federal Trade Commission (FTC) Chair Lina Khan, such as the halted acquisition of Figma by Adobe.
In the current environment, Security Token Offerings (STOs) could emerge as a new financing option for tech companies. With the incoming administration expected to shift its regulatory stance toward cryptocurrencies, and the emergence of meme coins tied to presidential election campaigns, this trend may accelerate. STOs can not only reduce the cost of going public for companies but also allow global investors to participate in investments in a non-controlling manner, similar to Nippon Steel's investment in U.S. Steel.
