Brad Garlinghaus, CEO of Ripple, last year publicly considered at the World Economic Forum in Davos, Switzerland, an initial public offering for a startup in San Francisco.
The company has just raised about $ 200 million in a risk-taking round led by the Tetragon Financial Group, with a valuation of $ 10 billion. The value of its signature product, a cryptocurrency called XRP, has declined over the previous year. But Ripple was about to rebuild its cross-border trading infrastructure, Gerlinghaus said, assuring that its future was bright.
A year later, an off-the-table offering. Instead, Ripple’s future depends on a judge’s ruling in a civil lawsuit filed in December by the Securities Authority.
Regardless of the outcome, the case is expected to become a major precedent for how U.S. regulators set rules and regulations that cover cryptocurrencies.
At the heart of the SEC’s lawsuit is a dispute over XRP, a bitcoin-like digital asset created by Ripple’s founders that will grow to be the third largest cryptocurrency in the world. It is designed to be part of a network that will help banks cut spending on cross-border transfers. The related software, however, never gained power, the SEC claims, leaving XRP with no clear purpose, other than to perform a funnel for sales to Ripple.