With the regulatory landscape in the broader crypto market clearing, there has been a growing call for Ripple Labs to reconsider its IPO plans
Calls have intensified for Ripple Labs Inc to go public through an Initial Public Offering (IPO). The latest call for this move comes from a renowned Japanese businessman, Yoshitaka Kitao, CEO of SBI Holdings. According to his post on X, Ripple, the parent company behind XRP, should prioritize an IPO as soon as it concludes its legal battle.
The Strategic Case for The Ripple IPO
The U.S. Securities and Exchange Commission (SEC) and Ripple have been locked in a legal dispute since December 2020. Although a Federal Court Judge has ruled on certain aspects of the lawsuit, the case has been appealed. The outcome might significantly affect Ripple’s operations and XRP’s market status.
In an anticipatory move, Kitao believes that Ripple needs to focus on expansion and growth once the legal issues clear up. An IPO would allow Ripple to go public by selling shares to investors and making substantial capital available to the company for growth initiatives. Additionally, an IPO could guarantee Ripple’s market expansion and solidify its reputation in the cryptocurrency sector.
As CEO of SBI Holdings, a key Ripple partner and investor, Kitao’s suggestion reflects his confidence in the company’s potential. It appears that Kitao believes Ripple could thrive in the global financial market via the IPO route post-litigation.
Experts consider Kitao’s suggestion as an avenue for Ripple to grow globally. They opine that an IPO could influence positive sentiments around XRP and its price performance. Interestingly, XRP’s market price recently shattered a record level it has not reached in the past three years. XRP crossed the $1 level and edged Dogecoin from the sixth position in the crypto asset market capitalization ranking.
Speculation Surrounding SEC Leadership and Ripple’s Next Steps
Although the U.S. SEC and Ripple have both filed appeals in their ongoing legal battles, speculations about the future regulatory space have emerged. Some anticipate that the appeal might eventually be shelved.
There are assumptions that SEC Chair Gary Gensler might resign before President-elect Donald Trump resumes office on January 20, 2025. These believe that if Trump appoints a new SEC head, the new boss might not pursue the case further.
Despite these expectations, Ripple has yet to suggest its willingness to go public. In a recent “Thinking Crypto” podcast, Brad Garlinghouse, Ripple CEO, said that an initial public offering had not been a “priority” for Ripple. He maintained that the primary reason for going public remains financial, and Ripple is financially strong and does not need to raise capital.
Noteworthy, Garlinghouse did not completely rule out a future possibility of going public. As of now, the broader cryptocurrency sector remains keen on whether a new SEC Chair will come on board and whether this development will impact the Ripple lawsuit.
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