Ripple Waiting for SEC Suit Resolution Before Going Public, Says CEO
Ripple still wants to go public, but a potentially landmark lawsuit is causing delay.
Speaking at CoinDesk’s Consensus 2021 event Wednesday, Ripple Labs CEO Brad Garlinghouse said plans first teased in early 2020 will have to wait until an enforcement action from the U.S. Securities and Exchange Commission (SEC) finds resolution.
“The likelihood that Ripple is a public company is very high at some point,” Garlinghouse told CoinDesk’s managing editor for global policy and regulation, Nikhilesh De. “In the middle of an SEC lawsuit, you know, we need to get that closed out.”
The SEC alleged in December 2020 that Ripple Labs had conducted an ongoing and unregistered securities sale via the XRP token closely associated with its brand. The case is still in the process of discovery, with Ripple asking a U.S. judge to force the SEC to disclose why it came to the conclusion that bitcoin and ether were commodities, not securities like XRP.
“The good news was the court did grant Ripple’s motion,” Garlinghous said. “All we’ve asked for for two to three years is that regulatory clarity, and so I think this is progress.”
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