- Ripple CEO Brad Garlinghouse recently suggested the company would pursue an IPO after its U.S. Securities and Exchange Commission (SEC) lawsuit concludes
- The SEC sued Ripple, the company behind the XRP (XRP-USD) crypto, in December 2020 for what it says was an illegal securities offering
- Ripple argues that XRP isn’t a security and isn’t subject to the same regulations
It seems an initial public offering (IPO) is still in the cards for Ripple, even as it navigates regulatory headwinds. Indeed, even in the midst of a heated U.S. Securities and Exchange Commission lawsuit, company leadership still has its eyes on a Ripple IPO.
As per a recent CNBC report, Ripple isn’t giving up its hope of coming public. Ripple, best known as the company behind XRP (XRP-USD), the sixth-largest cryptocurrency by market capitalization, has been under legal duress for more than a year.
The SEC accused Ripple and its executives of engaging in am illegal securities offering by failing to register roughly $1.4 billion worth of XRP as securities. The case presents major implications for the crypto world. Should the SEC win, it may set a precedent requiring cryptos be subject to stricter reporting and regulatory requirements. Should Ripple come out on top, it would mark a major win for the independence of decentralized digital assets.
As such, financial analysts, legal experts and crypto fans have been closely watching the saga unfold. The lawsuit finally seems to have a deadline, as the company has repeatedly hinted at its conclusion in 2023.
XRP has been largely unresponsive to the news, however. The coin remains 90% off its all-time high.
6 Things to Know About a Potential Ripple IPO
- Ripple expects its lawsuit with the SEC to reach a conclusion sometime in 2023.
- The suit had immediate and drastic effects on the XRP crypto’s price. The coin lost $15 billion in value in the first weeks after the SEC filed its suit.
- Ripple legal counsel has repeatedly accused the SEC of slowing down the process via delay tactics.
- The SEC argues XRP is fundamentally the result of an “illegal securities offering,” and accused Garlinghouse and his co-founder Chris Larsen of not disclosing sales of XRP.
- XRP operates as a transition currency to allow cross-border payments between other fiat and digital currencies.
- Ripple was last valued in January 2022 at $15 billion.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.