The cryptocurrency ecosystem has been evolving by the day. The center stage of this ecosystem has been captured for a long by the battle between Ripple and the US government that will bring about clarity on the cryptocurrency industry.
Ripple CEO Brad Garlinghouse in a conversation with Business Insider stated the chances of Ripple going through its initial public offering (IPO) is very high. The company will consider going public after its case with US Securities and Exchange Commission resolves.
If Ripple decides to go public it will be the second company to go public after Coinbase’s successful IPO in April. Coinbase had gone public on April 14 this year and raised 85.5 billion successfully before the markets closed on the same day. This is the second time there have been reports in the market about Ripple going public. Ripple had also planned an earnings call after the shareholders demanded it.
Brad Garlinghouse argues that XRP is a commodity
The current SEC lawsuit has been holding the company’s IPO. It alleges that XRP raised more than $1.3 billion via “an unregistered, ongoing digital asset securities offering.” The lawsuit names the co-founder Christian Larsen, CEO Garlinghouse, and Ripple.
Brad Garlinghouse argues that XRP is in fact a commodity and the United States is the only country that lists it as a security. SEC has alleged that Ripple distributed a significant amount of XRP in exchange for non-cash considerations such as market services. Regulatory bodies with current regulations find it difficult to differentiate between cryptocurrencies which are securities and commodities.