In Brief
- Ripple will launch an IPO after the SEC lawsuit ends.
- The US SEC accused Ripple of a $1.3 billion unregistered XRP offering.
- Ripple CEO is hopeful while the markets look primarily red.
Once Ripple has resolved its legal issues with the Securities and Exchange Commission (SEC), it will consider an initial public offering (IPO).
CEO Brad Garlinghouse told CNBC that Ripple might soon be able to go public with an IPO as they have made “good progress” in discussions about its security status with SEC.
He said he hopes the SEc won’t slow down the process any longer as all they are waiting for is clarity in the United States with the U.S SEC. He believes they are at a point where they can explore an IPO as soon as late this year, but he maintains that it will only be possible after they have gone past this lawsuit.
In December 2020, the SEC filed a lawsuit against Ripple, Garlinghouse, and its former CEO Christian Larsen for raising funds through an unregistered securities offering in 2013.
XRP Is Not A Security: Ripple
Ripple argued that the digital coin should not be treated as security in a motion to dismiss. They claimed this would bring it under much stricter regulatory scrutiny and potentially jeopardize the coin’s future.
Ripple’s XRP is the sixth-largest cryptocurrency by market capitalization. The price of XRP has been on a downward slide since November, and it’s fallen 42% in the last 30 days.
Crypto-related stocks have also taken a beating this year. Robinhood, which offers digital currency trading saw its shares tank 50% while Coinbase’s dropped nearly 75%.
The CEO of Ripple still has faith in its future growth despite the recent crypto winter. If they are given approval from SEC, then Garlinghouse hopes for continued success with XRP as well
He said that demand for XRP’s cross-border payments product called On-Demand Liquidity has increased eight times since last year.
When asked about their future growth, Garlinghouse said that it would probably continue to happen outside of the United States until they get some clarity and certainty in America.
