Ripple CEO Brad Garlinghouse said the San Francisco-based payment startup intends to go public after settling a legal battle with the American Securities and Exchange Commission (SEC).
XRP to go public
in one The interview During the consensus 2021 event, Garlinghouse praised Coinbase after the introduction of the crypto exchange on Nasdaq in April.
Ripple’s original cryptocurrency, XRP, rose 14.88% to $ 1 despite the fact that the general crypto market appears to be in decline. At the time of writing, XRP is trading at $ 1.02, with a market valuation of $ 44.21 billion. To put this in perspective, the price of XRP has increased by 390% over the previous year
Garlinghouse said Ripple is considering pursuing its plan to launch an initial public offering, but will have to wait until the lawsuit with the SEC is over.
“I think Ripple is very likely to be a public company. I think in the midst of an SEC lawsuit, you know that we need to shut it down and the SEC approves an S1, to do it.” Easy after you have closure and clarity and the regulatory certainty we have been seeking for so long.
In January 2020, Garlinghouse revealed Ripple’s plans to go public because he was Predicted There will be an IPO in the crypto space in the next 12 months. In December, the SEC formally filed a complaint against the payment giant, Alleging That Ripple’s original asset XRP was an unregistered security at the time of its launch and remains a security to date.
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The news comes as Ripple blocks the SEC from accessing legal records
This current XRP price increase comes because Ripple’s score is another small Victory In its conflict with the Securities and Exchange Commission of the United States (SEC). As requested by the regulator, Ripple has managed to prevent the SEC from obtaining any legal paperwork from the company.
– James K. Philan (@FilanLaw) May 30, 2021
The US Securities and Exchange Commission (SEC) has requested access to Ripple’s legal issues to strengthen its case in the complaint. Access to these papers, according to the Securities Commission, would help prove that Ripple was well aware of XRP’s “security” prior to the 2013 ICO sale. However, the SEC’s demand to present Ripple’s papers relating to the XRP sale was rejected by a New York judge.
The validity in this case was seen by Judge Sarah Netburn of the District Court for the Southern District of New York. The judge delivered the ruling on Sunday, May 30. Judge Sarah Netburn writes in a public filing:
“Ripple claims that the SEC’s requested communications are protected by attorney-client privilege, which is not waived. Attorney-client privilege” encourages full and clear communication between attorneys and their clients and thus complies with the law And promotes broad public interest in the administration of justice. “
Issuing “fair notice” has been a major issue in the SEC v. Ripple fight. For the past eight years, Ripple says the SEC has never given “proper notice” as to whether the blockchain business is breaking any securities rules. FinCEN and the US Department of Justice at the same time considered XRP to be a convertible virtual currency.
Ripple is now working to take the issue forward, focusing on the SEC’s inaction and sudden change in attitude. On the other hand, Judge Netburn held that if Ripple’s defense was clearly identified, she would not take a stand. According to the judge:
“I only reach this limited question as to whether Ripple relinquished his prerogative to his subjective state of mind or counsel’s advice only by raising the defenses, thus concluding that it did not.
Accordingly, the SEC proposes Not allowed. If, at a later date, Ripple extends his good faith beliefs or relies on his privileged communications in support of his impartial notice defense, the plaintiff may renew his application to the court ”.
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