After the SEC litigation is resolved, Ripple is considering an IPO, according to its CEO
Ripple CEO Brad Garlinghouse told CNBC on May 25 that the business will look into IPO chances after its dispute with the Securities and Exchange Commission (SEC) is finished. The Securities and Exchange Commission (SEC) has been suing Ripple for 15 months, saying that their token, XRP, is security. As a result, the SEC claims that the company, Garlinghouse, and executive chairman Chris Larsen illegally sold XRP while marketing securities.
In contrast, Ripple maintains that XRP should not be classified as a security. XRP is the sixth most valuable cryptocurrency, with a market value of $19.54 billion. Ripple uses the currency to establish a cross-border payment system. Garlinghouse believes the issue will be resolved this year, giving Ripple time to assess its options on going public.
Ripple has a positive cash flow and is already profitable. Over the previous two years, the business has repurchased almost $500 million in stock and invested in 30-40 crypto startups, according to Garlinghouse. As a result, Ripple is ready to consider an IPO. Garlinghouse’s remarks come as the crypto market continues to suffer losses as a result of the Terra crash. Ripple, on the other hand, has been constantly growing.
According to Garlinghouse, the amount of On-Demand Liquidity — Ripple’s cross-border payments product utilizing XRP — grew to $8 billion in the first quarter of 2021 compared to the first quarter of 2021. However, due to the US litigation, the majority of Ripple’s growth has come from outside the US. And, according to Garlinghouse, the situation is unlikely to alter until the court struggle is over.
He attributes the United States’ slowed development to a lack of regulatory “clarity and predictability.” For entrepreneurs and investors to participate in the crypto market, regulatory certainty is required. In addition, the United States appears to be lagging behind in terms of crypto legislation.
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