- Ripple is avoiding a U.S. IPO due to ongoing regulatory uncertainty with the SEC, instead aiming for a London IPO by 2025.
- Ripple is expecting a UK Financial Conduct Authority (FCA) license by December 2024.
Ripple’s recent judicial triumph, when Judge Torres granted a stay on the monetary penalties imposed by the SEC, is a significant milestone for the company. Ripple has now removed a hurdle stalling the $29.99 billion company from obtaining a UK Financial Conduct Authority (FCA) certificate. Ripple anticipates acquiring an FCA certificate by December 2024. This will clear the road for a possible IPO in London the following year.
Ripple has long been a victim of what the company perceives as the SEC’s adversarial crypto stance. The regulatory uncertainty surrounding digital assets in the U.S. has forced Ripple to look for other jurisdictions with clear rules of the road, with the U.K. being the prime candidate.
Ripple dismisses speculation about a forthcoming U.S. IPO.
Ripple CEO Brad Garlinghouse has been vocal about the challenges posed by the U.S. SEC, especially when a company tries to go public. Early this year, the CEO candidly refuted plans for an IPO in the U.S., stating, In the United States, trying to go public with a very hostile regulator that’s approved your S-1, that doesn’t sound like a lot of fun to me,” He substantiated his claim rooting SEC’s inconsistent actions against Coinbase stating that “Coinbase obviously had their S-1 approved. And now the SEC is suing them for doing things that were outlined in their S-1.”
Additionally, as per our earlier report, he made it very clear that Ripple has no interest in pursuing that route, primarily due to the U.S. Securities and Exchange Commission’s harsh stance on cryptocurrencies.
Being a $125 million victim of the hostile regulator, Brad advised other companies from incorporating in the U.S. He warned that doing so would certainly lead to increased legal bills, an experience Ripple has personally encountered.
London IPO on the Horizon
Ripple’s UK crypto license application has gained momentum following recent developments in its ongoing legal battle with the SEC. The temporary stay on the SEC’s enforcement action has paved the way for Ripple to secure its UK license. Word has it that the company will have bagged the certificate three months from now.
#XRP #XRPCommunity
Judge Torres approved Ripples request for a stay of the monetary penalty… This should mean that Ripple now has all the information it needs to get approval from the UK FCA. I speculated a while ago that not knowing how much Ripple might have to pay the SEC… https://t.co/qxr6ISLJAa pic.twitter.com/LxxJVS1At0— Ashley PROSPER (@AshleyPROSPER1) September 6, 2024
The legal clarity in the U.K. plus Ripple acquiring a U.K crypto certificate is the perfect recipe for a potential initial public offering (IPO) in London as early as 2025. Ripple’s decision to pursue an IPO outside the U.S. reflects its ongoing avoidance of the U.S. market, largely due to regulatory concerns meanwhile it has taken to other countries as there biggest enthusiasts.
Meanwhile, at the time of writing, XRP is swapping hands with $0.5293 marking a 0.32% surge in the last 24 hours.
