Ripple is back in the spotlight in the financial market, with rumors of a possible IPO that could raise the company’s valuation to over $1 trillion. This figure not only projects a future of extraordinary growth, but could also trigger a strong appreciation in the price of XRP. Despite the promising scenario, Ripple’s fate is at stake, with an upcoming hearing with the SEC that could radically change the course of the company.
Legal disputes between Ripple and the SEC have imposed severe limitations on the company. Although development and expansion have continued, many investors have preferred to avoid the risks associated with regulatory uncertainty.
The next major meeting with the SEC is scheduled for January 15, and it will be a pivotal one. This event could either pave the way for an IPO or throw Ripple into even more uncertain territory. Attorney John Deaton, a prominent Ripple advocate, said: “The next few weeks could pave the way for a settlement or bring new, unexpected challenges.” A resolution with the SEC would eliminate regulatory uncertainty and facilitate an IPO, while an unfavorable outcome could seriously jeopardize that possibility.
After years of pressure, CEO Brad Garlinghouse appears more inclined to consider going public. Political changes, such as the election of Donald Trump and the possible departure of SEC Chairman Gary Gensler, a critic of the crypto sector, have created a new favorable scenario for Ripple.
Garlinghouse recently suggested that now could be an opportune time to move forward with an IPO, amid a relaxed regulatory environment and a market hungry for technological innovation.
