Ripple, a San Francisco fintech firm, has decided to put its plans for an initial public offering (IPO) in the United States on hold. The company’s CEO, Brad Garlinghouse, made this announcement at the World Economic Forum in Davos. According to Garlinghouse, Ripple explored the possibility of going public outside the US due to what he called “hostile” conditions created by the US Securities and Exchange Commission (SEC). Ripple has been engaged in a legal battle with the SEC since 2020 over allegations of selling unregistered securities.
Garlinghouse mentioned Coinbase, another major crypto firm that successfully went public but is now being sued by the SEC for actions outlined in its S-1 filing. Despite putting the IPO plans on hold, Ripple is keeping the option open and will reevaluate it if there are changes in regulations or new regulators at the SEC.
Garlinghouse has been critical of SEC chair Gary Gensler, whom he considers a “political liability.” He believes that Gensler is not acting in the best interests of the citizens or the long-term growth of the economy.
In terms of XRP’s price action, it has remained relatively flat during the recent crypto market rally. XRP is currently trading at $0.574 and has dropped 8% since the beginning of 2024. It is still down 83% from its all-time high in 2018.
Despite rumors of a spot XRP ETF, traders have not been swayed. The token’s lackluster performance reflects the ongoing legal battles and regulatory uncertainty surrounding Ripple.
Hot Take: Ripple Abandons IPO Plans Due to Hostile SEC Conditions
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