Ripple CEO Tempers IPO Expectations Despite Favorable SEC Case Development XRP Raises

Summary

• Ripple CEO Brad Garlinghouse indicated that an IPO is not a current priority for the company, highlighting its self-funded growth and strategic focus on acquisitions within the blockchain infrastructure space.

• Despite the SEC withdrawing its appeal in their legal case against Ripple, proceedings are ongoing as Ripple challenges the $125 million fine and the classification of institutional XRP sales as securities, although XRP is deemed not a security in secondary market trading.

Despite a partially favorable turn in its protracted legal dispute with the Securities and Exchange Commission (SEC), Ripple CEO Brad Garlinghouse has indicated that an initial public offering (IPO) is not currently a priority for the company.

The August 2023 judgment by Judge Analisa Torres, which stipulated that XRP was not a security in secondary market trading but constituted a security when sold directly to institutional investors, remains in effect.

Following news of the SEC’s dropped appeal, the price of XRP experienced a notable increase, climbing almost 11% to $2.52, based on data compiled by CoinGecko.

Speaking to Bloomberg on Wednesday, Garlinghouse elaborated on Ripple’s decision to maintain its active appeal despite the SEC’s partial retreat.

“The SEC has dropped their appeal, effectively shifting our position from defendant to plaintiff in certain aspects,” Garlinghouse stated.

He also disclosed the substantial financial outlay Ripple has incurred in legal expenses since the lawsuit commenced in December 2020.

“We have invested over $150 million in our defense, which, crucially, has implications extending beyond just Ripple, impacting the wider crypto industry,” he emphasized.

Garlinghouse criticized the SEC‘s approach under Chair Gary Gensler, characterizing it as an attempt to intimidate the cryptocurrency sector through aggressive litigation.

“The SEC’s strategy was to assert authority over crypto through legal challenges; that phase, in our view, has concluded,” he added.

Ripple Focuses on Acquisition and Stablecoin Growth

During the Bloomberg interview, Garlinghouse acknowledged the option of abandoning Ripple’s own appeal but underscored that the contested fine originated from XRP transactions conducted in 2015 and 2016—activities that caused no discernible financial harm to investors.

Garlinghouse proposed that factors such as the anticipated change in presidential administration under Trump and evolving SEC leadership dynamics have influenced this shift.

“If one were to consult figures like Paul Atkins and David Sacks, it’s plausible they would concur that this legal action should have been avoided from the outset,” Garlinghouse commented.

Instead of pursuing a public listing, Ripple‘s current strategic focus is on acquisitions.

Garlinghouse confirmed the company’s active pursuit of opportunities to acquire businesses specializing in blockchain infrastructure.

“We anticipate industry consolidation in the coming year, and Ripple intends to play a significant role in that process,” he indicated.

Ripple is actively expanding its presence in the stablecoin domain with the launch of RLUSD the previous year.

The company has ambitious objectives for its stablecoin, aiming to position RLUSD among the top five stablecoins in the market by year-end.

“Our goal is for RLUSD to rank among the top five stablecoins by market capitalization by the end of this year.

Moreover, we project substantial overall growth in the stablecoin market throughout this year,” Garlinghouse projected.

He cited analyst estimates projecting a potential tenfold expansion of the stablecoin market, currently valued at $230 billion, over the next five years, emphasizing Ripple’s ambition to leverage this growth.

Finally, addressing questions regarding XRP supply management and Ripple’s significant token holdings (42% of total supply), Garlinghouse dismissed any concerns about unfair advantage.

“Our XRP holdings and management strategies have been transparently disclosed for years. There is no substantive change in our approach,” he asserted.

He pointed to Ripple’s regular publication of an XRP Markets Report, which provides detailed insights into the company’s market sales of XRP.

Also Read: Ripple CEO Brad Garlinghouse Appointed as a Crypto Advisor to the White House 

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