Ripple’s potential move toward an initial public offering (IPO) is gaining traction following recent comments by SBI Holdings CEO Yoshitaka Kitao. Kitao took to social media platform X to suggest that Ripple should prepare for an IPO once its legal battle with the U.S. Securities and Exchange Commission (SEC) is resolved.
Kitao’s statement followed a celebration of XRP’s success in becoming the sixth-largest cryptocurrency by market capitalization. His support for Ripple's public listing aligns with his longstanding appreciation for the company, which began in 2017 when SBI Holdings, a major Japanese financial group, entered into a strategic partnership with Ripple. This collaboration aimed to innovate cross-border payments, with Kitao joining Ripple's Board of Directors in 2019.
Kitao has championed XRP as a global digital currency standard, emphasizing its low transaction costs and scalability. His leadership has been instrumental in integrating Ripple's technology into SBI's operations across Japan and the Asia-Pacific region.
Ripple's leadership hesitant to pursue an IPO
Despite Kitao’s push, Ripple’s leadership, including CEO Brad Garlinghouse, has been resistant to pursuing an IPO. Garlinghouse has cited the company’s strong financial position and the ongoing regulatory uncertainty in the U.S. as key reasons for avoiding public market fundraising. He has also pointed to Ripple's ongoing legal battles with the SEC, which have complicated the decision.
Ripple’s lawsuit with the SEC dates back to December 2020, when the regulator accused the company of selling unregistered securities through XRP. In July 2023, a major legal victory was achieved when a U.S. federal court ruled that XRP could not be classified as an inherent security. However, the court also found that Ripple had violated securities laws in certain institutional sales of XRP, resulting in a $125 million penalty in August. The SEC’s appeal of this decision has prolonged the uncertainty.
CEO hopeful for more favorable US regulatory environment
Despite the ongoing legal challenges, Garlinghouse remains hopeful for a more favorable regulatory environment in the U.S., especially following comments from former President Donald Trump, who suggested he would replace SEC Chair Gary Gensler if re-elected. Garlinghouse views this as a positive sign for the crypto industry.
While interest in Ripple’s future plans is growing, the timeline for any IPO will largely depend on the outcome of the ongoing legal dispute with the SEC.
