Ripple CEO, Brad Garlinghouse, says it’s “highly likely” that the company will go public after its SEC lawsuit is concluded.
CEO of Ripple, Brad Garlinghouse, stated the company could go public if, and when, it resolves its lawsuit with the Securities and Exchange Commission (SEC). The CEO was asked directly about the prospect of going public and, according to Business Insider, responded by saying the chances are “very high at some point.”
This is the second time the company has stated as much after shareholders said the company planned to make the move on an earnings call. After the news broke, XRP jumped 14%.
Ripple’s decision to go public is far from surprising considering how successful Coinbase’s launch was. On the first day that Coinbase was listed on the NASDAQ, its capitalization hit $100 billion at one point, eventually ending the day at $85.5 billion.
After this most recent announcement, XRP jumped 6% but has retraced slightly to $0.96.
Is XRP a security?
At this juncture, the major holdup for Ripple Labs to make the jump to an IPO is the SEC lawsuit filed against it back on December 22, 2020. This was a move that Garlinghouse responded to by saying, “It’s not just Grinch-worthy, it’s shocking.”
The lawsuit namesRipple Labs, Garlinghouse, and co-founder Christian Larsen. The suit alleges that XRP raised more than $1.3 billion via “an unregistered, ongoing digital asset securities offering.”
In response, Garlinghouse claimed that XRP is in fact a commodity and that the USA is the “only country that lists XRP as a security.” All other countries classify XRP as a currency. The suit goes on to allege Ripple distributed billions of XRP in exchange for non-cash considerations such as market-making services.
This has become a common issue lately for the SEC and Commodities Future Trading Commission (CFTC). Each has found difficulties in determining which cryptocurrencies are commodities and which are securities. To tackle this issue, the government agencies have teamed up to clarify digital asset regulations.
The so-called “Eliminate Barriers to Innovation Act of 2021” passed the House vote in April. If the Senate gives the green light, a joint working group of civilians will advise both entities and develop solutions on addressing digital assets.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.