James Atkins
Editor
Editor
After the U.S. Securities and Exchange Commission’s (SEC) lawsuit is completed. Ripple CEO Brad Garlinghouse has stated that the firm will begin exploring an initial public offering (IPO).
In an interview on Fast Money, Garlinghouse says that Ripple will look at going public “in the next 12 months;” after the lawsuit is resolved. The SEC has accused Ripple of selling $1.3 billion worth of unregistered securities.
The Ripple payment network, for example, employs its XRP currency (the sixth biggest cryptocurrency by market capitalization)
To process cross-border transactions. The firm converts fiat into XRP so that the transaction fee may be lowered and then reverses the conversion of XRP back to fiat.
The company has been trying to distance itself from XRP, however, the token is essential for its operations. If the SEC declares XRP a security, it would deal a major blow to Ripple.
The Securities and Exchange Commission (SEC) accused Ripple CEO Chris Larsen, executive chairman of Ripple, of involvement in illegal securities sales.
The SEC case has been going on for 15 months now, but Ripple has denied wrongdoing claiming, That the coin should not be regarded as a security but rather as a label that will subject it to more stringent controls.
However, the firm expects everything to be completed by the end of this year. So that they may concentrate on their initial public offering.
During World Economic Forum in DAVOS, Switzerland, Garlinghouse told CNBC that:
“I think we want to get certainty and clarity in the United States with the U.S. SEC. You know, I’m hopeful that the SEC will not slow that process down any more than they already have…But you know, we certainly are at a point in the scale, where that is a possibility. And we’ll look at that once we’re past this lawsuit with the SEC.”
He said that in a recent interview, which happens as the crypto market collapse. Has caused trillions of dollars in value to evaporate from the cryptocurrency market.
Furthermore, XRP has tumbled by 41.9 percent in the previous 30 days. With Coinbase stock prices plummeting 75% this year while Robinhood share values have dropped nearly 50%.
In an interview with The Street, Brad Garlinghouse talks about the company’s plans to go public.
He said that they are waiting for the SEC lawsuit to be resolved before they make a decision. He also states that Ripple is at a point where an IPO is a possibility. And that they will look into it once the lawsuit is over.
Despite all of this, Garlinghouse claims the firm has continued to expand. He also states that for the first quarter (Q1) of 2018.
On-Demand Liquidity volume for XRP products utilizing cross-border payments increased to $8 billion as opposed to last year’s $1 billion for the same period.
Ripple is currently facing a lawsuit from the US Securities and Exchange Commission (SEC) over the sale of its XRP token.
Which the regulator alleges is unregistered security. If the SEC prevails in the case, it could have far-reaching implications for Ripple and other companies in the cryptocurrency space.
Garlinghouse says:
“Our growth is almost all outside the United States. I think that’ll probably persist until we get the clarity and certainty in the U.S. we’ve been seeking.”
Following the completion of the SEC lawsuit, Ripple will consider an initial public offering (IPO), according to CEO Brad Garlinghouse.
In an interview with Bloomberg TV on Tuesday, Garlinghouse said that once the regulatory environment in the United States becomes more clear. An IPO could be on the table for Ripple.
An IPO would provide an exit strategy for some of Ripple’s early investors, who have been with the company for eight years.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
