Ripple, the blockchain-based payment company known for its cryptocurrency XRP, may soon reconsider its IPO plans. The company, which has faced legal challenges under the leadership of SEC Chair Gary Gensler, is now eyeing a potential leadership change at the SEC as a turning point.
Ripple CEO hints at reconsidering IPO
Ripple CEO Brad Garlinghouse has suggested that the company may reconsider going public as the regulatory environment improves. Under Gensler, the SEC has taken a stringent stance on cryptocurrency, creating challenges for Ripple and other blockchain companies. However, the appointment of cryptocurrency supporter Paul Atkins as the next SEC chair could signal a shift in the regulatory landscape.
Bold predictions from lawyer John Deaton
XRP advocate lawyer John Deaton, a supporter of Ripple, has made significant predictions about the company's future. Deaton believes Ripple will be ready to launch an IPO by late 2025 or early 2026, in line with anticipated changes in regulatory policy and SEC leadership.
SEC appeal: A withdrawal is likely to occur
Ripple's legal battle with the SEC is a defining chapter in the company's history. In 2023, a federal court ruled that XRP is not a security when sold algorithmically to retail investors via exchanges. The SEC has appealed this decision, but Deaton predicts the agency will withdraw the appeal due to the low likelihood of success.
Deaton cites two main reasons for this forecast:
Ruling based on events: The 2023 ruling is based on specific events and does not set a binding precedent for other cases, limiting its broader implications.
Threatened credibility: Prolonging the legal battle may damage the SEC's credibility more than Ripple's, as the case highlights inconsistencies in the agency's approach to cryptocurrency regulation.
Paul Atkins: A game changer in cryptocurrency regulation
Paul Atkins, a prominent supporter of the cryptocurrency industry, is expected to succeed Gensler as SEC chairman when President-elect Donald Trump takes office on January 20, 2025. Atkins' appointment has been widely welcomed by the cryptocurrency community, viewing it as an opportunity for balanced and forward-looking regulatory policies.
Deaton predicts that Atkins will prioritize resolving the Ripple-SEC dispute, potentially reaching a settlement by mid-2025. Such a resolution would pave the way for Ripple to pursue its growth plans, including a potential IPO.
A promising future for Ripple
With the anticipated leadership change at the SEC and the possibility of resolving legal challenges, Ripple's prospects appear brighter than ever. An IPO in late 2025 or early 2026 could mark a new chapter for the company, enabling it to expand operations and strengthen its position in the global financial ecosystem.
As the cryptocurrency industry eagerly awaits these developments, Ripple's ability to navigate the changing legal environment will be crucial to the company's success. The next two years promise to be transformative not only for Ripple but also for the cryptocurrency space as a whole.
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