Ripple IPO: When can the XRP crypto's owner go public?

Highlights 

• Speculations for Ripple's IPO started when Yoshitaka Kitao, the chief executive officer of SBI Group made comments on a possible offering.
• Ripple is entangled in a battle with the US regulatory authorities for the past few months.
• Ripple is the owner of XRP crypto, and its holders are hopeful that the decision could come in favor of Ripple.

The blockchain-based digital payment network Ripple is entangled in a battle with the US regulatory authorities for the past few months. It all started in January this year when it was alleged that Ripple sold XRP, unregistered security which was worth US$ 1.38 billion.

Ever since the allegations made by the US Securities and Exchange Commission (SEC), Ripple is engaged in a courtroom battle and is trying to arrive at a consensus. The blockchain technology-based platform claims that the sales did not constitute securities.

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Although there's no outcome yet, holders of XRP are hopeful that the decision could come in their favor. Since the past few months, potential investors have been searching for Ripple's initial public offering, however, it is unlikely until the issue gets resolved.

Ripple IPO on the cards?

There's no certainty if or when the company will go for an initial public offering.

Speculations for Ripple's IPO started when Yoshitaka Kitao, the chief executive officer of SBI Group, said during an earnings presentation call that Ripple's executives were planning to go public once the lawsuit is settled fully.

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Notably, the SBI Group is a Japanese financial giant and it is Ripple's largest shareholder. The latest development in the SEC vs Ripple lawsuit is that the court has granted SEC's request to extend the discovery deadline to January 2022.

Ripple IPO: When can the XRP crypto's owner go public?

Until this issue is resolved, it is highly unlikely that the blockchain-based digital payment platform will prepare for an IPO.

Bottom line

In October 2021, Ripple filed a letter with the US Magistrate and said that the SEC was neglecting its requests for admission and out of the 30,000 requests, the regulatory authority responded to less than 300 requests.

The attorneys representing Ripple have claimed that it is concerned over repeated dismissal of requests of admission.

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The lawyers want the SEC to review 1,700 separate contracts which were dubbed as unlawful securities offerings, and the regulatory body reportedly claims that is unduly burdensome to review the contracts.

Ripple claims that the sales were investment contracts under the Howey Test and as the SEC has reportedly failed to identify contractual provisions supporting these claims, it is being speculated that the outcome may come in favor of Ripple.