Despite a significant legal victory against the U.S. Securities and Exchange Commission (SEC), Ripple, the blockchain company behind XRP, has announced that it will not pursue an initial public offering (IPO) in the immediate future. This decision, revealed by Ripple President Monica Long at the recent Ripple Swell conference, signals a strategic focus on internal growth and independence, contrasting with the growing trend of crypto companies entering public markets.
Ripple's decision comes after a protracted legal battle with the SEC, which concluded earlier this year after both sides dropped their appeals. The lawsuit, initiated in December 2020, revolved around whether XRP sales constituted unregistered securities offerings. While a judge ruled that XRP is not a security when traded on secondary markets, institutional XRP sales were classified as securities. Ripple CEO Brad Garlinghouse stated that the SEC's strategy under Chair Gary Gensler was an attempt to bully the crypto industry through legal action.
Several factors underpin Ripple's decision to forgo an IPO. Monica Long emphasized that the company is well-capitalized and prefers to maintain its independence. Ripple recently completed a funding round, raising $500 million with a valuation of approximately $40 billion. This funding round, led by investors like Fortress Investment Group and Citadel Securities, provides Ripple with sufficient capital to fund its growth initiatives without the need for public capital.
With a strong financial position, Ripple plans to focus on internal growth, strategic partnerships, mergers and acquisitions, and scaling its products, particularly its RLUSD stablecoin. Ripple launched its stablecoin in December 2024, and it has a market capitalization of just above $1 billion. Ripple's recent acquisitions, including Hidden Road (rebranded as Ripple Prime) and Palisade, further demonstrate this strategic direction. These acquisitions add multiparty computation, zero-trust architecture, and multichain support to Ripple's institutional platform.
This stance sets Ripple apart from other cryptocurrency firms, such as Circle, Gemini, and Figure Technology Solutions, that have pursued public offerings in 2025. Garlinghouse had previously mentioned that Ripple might consider going public once its legal battle with the SEC concluded. However, he also noted that an IPO was not a short-term priority, as Ripple did not need to raise capital. He also stated that the company had explored markets outside the U.S. for an IPO but any such plans were on hold.
Despite settling with the SEC, Ripple is still appealing the $125 million fine and the ruling that requires it to register institutional XRP sales as securities. Garlinghouse has stated that the fine stems from XRP sales in 2015 and 2016—transactions that did not harm any investors. He also noted that the SEC has abandoned their appeal, meaning Ripple goes from being the defendant to the plaintiff.
The SEC and Ripple also made a joint request to dissolve an earlier court order and lower Ripple's financial penalty, but this request was denied by Judge Analisa Torres. The judge stated that changes to a final ruling demand extraordinary circumstances, and no such justification was found in this instance. She reaffirmed that Ripple had already been found violating federal securities laws, with a demonstrated likelihood of continued misconduct.
