Why Ripple Will Not Continue with Plans for an IPO in the USA

Ripple (XRP) will not go ahead with a planned IPO in the USA. CEO Brad Garlinghouse referred to the SEC, which is hindering the crypto industry. Is London now coming into play?

For around five years, Ripple (XRP) has been thinking about an IPO with some regularity

CEO Brad Garlinghouse has repeatedly taken up the topic – and has now made a decision. According to “Good Morning Crypto,” Garlinghouse made a firm statement in a background discussion and said that Ripple is no longer interested in a US IPO. He cited the “hostility” that the US Securities and Exchange Commission (SEC) is demonstrating towards the crypto industry as the reason for this.

Garlinghouse recalled the example of Coinbase. The crypto exchange went public in April 2021 with the approval of the SEC – and is now being sued by the SEC for business details that were discussed before the IPO, said Garlinghouse. He can only advise entrepreneurs in the crypto industry not to implement their projects in the USA because they would have to expect costly legal proceedings there.

Ripple itself is at odds with the SEC and has been fighting in court for more than three years against the SEC’s attempt to classify XRP as a “securities”. Ripple has so far obtained two rulings in its favor, but currently has to fear that the SEC will file an appeal . This uncertainty also seems to be hindering the launch of a stablecoin planned by Ripple called RLUSD.

In general, Ripple is working on reforming itself into a financial services provider . The community is now speculating whether Ripple could attempt an IPO outside the USA. London is being mentioned. However, Ripple’s management has not commented on such considerations.

Conclusion: Is Ripple ready for the stock market? What will become of XRP?

A major investor in Ripple is the Japanese SBI Group , which is expecting an IPO. Against this background, a placement of Ripple shares on the Tokyo Stock Exchange, for example, would also be conceivable. Investors are meanwhile keeping an eye on the price development of XRP.

Despite the court successes, Ripple’s cryptocurrency is not developing its own momentum and has been oscillating in a relatively narrow corridor between 0.45 and 0.70 US dollars for years now. With the debut of the Ripple stablecoin RLUSD expected later in 2024, XRP is likely to continue to lose importance in the foreseeable future.

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