According to a new report from Ripple Labs, Ripple, the payments company behind the XRP cryptocurrency, is facing the possibility of a delayed IPO due to regulatory uncertainty.
Ripple has been working towards an IPO for several years but has faced several regulatory challenges. In 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, alleging that the company had sold XRP as an unregistered security.
The SEC lawsuit has cast a shadow over Ripple’s IPO plans. The company has been trying to settle the lawsuit with the SEC, but the two sides have not reached an agreement.
In a new report, Ripple Labs’ general counsel Stuart Alderoty warned that the company’s IPO could be delayed if the SEC lawsuit is not resolved soon.
“The ongoing SEC lawsuit is a significant risk factor for Ripple’s IPO,” Alderoty wrote. “The company’s ability to go public could be delayed if the lawsuit is not resolved favorably.”
Alderoty also noted that the SEC’s lawsuit has created “uncertainty” for Ripple’s business.
“The SEC’s lawsuit has created uncertainty for Ripple’s business, making it more difficult for the company to plan for the future,” Alderoty wrote.
According to Wall Street Specialist Linda P. Jones, Ripple’s IPO could occur sometime in 2024. She added that the timeline would be best for the crypto firm to launch its IPO. However, she has asserted that if the IPO does not occur within the timeline, it will be shifted to 2025.
Impact on XRP
The SEC’s lawsuit has also hurt the price of XRP. The cryptocurrency’s price has fallen by more than 80% since the lawsuit was filed.
The delay of Ripple’s IPO could also hurt the price of XRP. Investors may be less willing to invest in XRP if the company’s future is uncertain.
The SEC’s lawsuit against Ripple is a major challenge for the company. The lawsuit could delay Ripple’s IPO and hurt the price of XRP. Ripple is working to resolve the lawsuit with the SEC, but the two sides have not agreed.
It is important to note that this is just one expert’s opinion, and the outcome of the SEC lawsuit is still uncertain. However, the possibility of a delayed IPO is a significant risk for Ripple, and investors should be aware of this risk when making investment decisions.