All about Ripple’s IPO dilemma and its impact on XRP
- Ripple had considered international markets for future expansions.
- CEO Brad Garlinghouse cited a lack of regulatory clarity as a factor in these plans.
Ripple [XRP] had to go through massive trials and tribulations due to the increased regulatory scrutiny it faced over the last few years.
Even though a large majority of Ripple’s legal disputes are behind them, the company is still maintaining caution as it moves forward.
Looking far and beyond
This prudent approach has led Ripple to explore potential international avenues for its future developments.
Recently, CEO Brad Garlinghouse disclosed that the company had initially contemplated markets outside the United States for its anticipated initial public offering (IPO). He attributed this decision to a “hostile” regulatory landscape.
However, any immediate plans for an IPO have been put on hold as the company is looking to adopt a measured strategy.
In an interview with CNBC at the World Economic Forum, Garlinghouse shed light on Ripple’s exploration of jurisdictions with well-defined regulatory frameworks as potential candidates for facilitating a public listing.
He clarified that the company refrained from pursuing a public offering in the United States due to concerns arising from the Securities and Exchange Commission’s (SEC) actions.
Proceeding with caution
Garlinghouse voiced concerns about maneuvering through the U.S. IPO process, describing the regulatory landscape as unpredictable, despite the SEC approving Ripple’s S-1 filing.
Drawing a comparison to another major player in the cryptocurrency space, Coinbase, the CEO highlighted the irony of the SEC suing Coinbase for actions outlined in its S-1, despite the document having received regulatory approval.
Impacts on XRP
The potential for a Ripple initial public offering (IPO) holds significant implications for XRP. An IPO would likely bring increased visibility and credibility to Ripple as a company, drawing attention from investors, analysts, and the media.
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Furthermore, the IPO process involves regulatory compliance, potentially leading to greater integration of Ripple and XRP into conventional financial systems.
At press time, XRP was trading at $0.567382, with its price having fallen by 0.7% in the last 24 hours. The altcoin’s trading volume also fell during this period.