Ripple CEO Brad Garlinghouse recently revealed in an interview on the Thinking Crypto podcast that the company is not actively pursuing an initial public offering (IPO). According to Garlinghouse, Ripple’s legal fight with the U.S. Securities and Exchange Commission (SEC) continues to play a critical role in delaying the IPO. While the prospect of going public remains on the table, Ripple is focusing on operational stability and shareholder value before exploring this path.
Why Ripple Is Holding Off On Its IPO
Garlinghouse explained that many companies seek public offerings to raise capital, but Ripple’s financial position makes that unnecessary. With sufficient liquidity and ongoing investments, Ripple has sustained its growth without relying on public funding. “The SEC has not exactly been a friend to Ripple,” Garlinghouse remarked, underscoring the challenges the company has faced during the regulatory battle.
Ripple’s strategic decision to delay the IPO reflects its focus on ensuring proper company valuation. The CEO hinted that while an IPO may happen in the future, the priority for now is achieving legal clarity and maintaining shareholder liquidity.
SEC Lawsuit Continues to Cast a Shadow
The long-running legal battle between Ripple and the SEC remains a significant hurdle. Although Ripple secured a partial victory earlier this year, the SEC has filed an appeal, signaling the fight may drag on until 2026. Until the legal situation is resolved, Ripple prefers to maintain its focus on stability rather than rushing into the public markets.
Garlinghouse acknowledged that the idea of going public has been discussed for years. However, the ongoing regulatory uncertainty makes it difficult to determine the right time for an IPO. “We’re keeping our options open,” he emphasized, reassuring stakeholders that Ripple will consider an IPO once the legal environment is more favorable.
Ripple’s Growth Despite Legal Challenges
Ripple has not let the legal setbacks slow down its business. The company has continued to invest and acquire without public funding, showcasing its resilience and strategic foresight. Additionally, Garlinghouse hinted at a major upgrade for the XRP Ledger, reinforcing Ripple’s commitment to innovation.
Also Read: Ripple Swell 2024 – XRP Gains 4.9% Amid RLUSD Launch & Key Partnerships
As of now, XRP is trading at $0.5433, down 1.29% over the past 24 hours but up 1.66% over the past week. Despite market fluctuations, Ripple remains focused on long-term growth and legal resolution before taking the next step toward an IPO.
This wait-and-watch approach highlights Ripple’s cautious but strategic stance in navigating both regulatory pressure and market opportunities, ensuring the company is well-positioned when the right moment for an IPO arrives.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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