Brad Garlinghouse, the CEO of cryptocurrency exchange Ripple, said on CNBC that the company is exploring the possibility of an IPO once its lawsuit against the U.S. Securities and Exchange Commission is resolved. Notably, the lawsuit filed by the SEC against the company has been going on for over a year but Ripple is confident that the case could end by 2022.
Ripple’s Lawsuit Might Finally Come to an End
Through the use of the sixth-largest cryptocurrency, XRP, the company facilitates cross-border payments. The cost of doing business is lowered by converting fiat to a digital asset, making the transaction faster and more convenient.
The U.S. Securities and Exchange Commission (SEC) has accused the company and Garlinghouse of violating the securities laws. The agency claims that it made an illegal offering of the digital asset. However, the company has argued that it should not be regarded as a security.
Garlinghouse said he is hopeful that the SEC will not take up the company’s case any further. He noted that he is confident that the agency will not slow down the process. “But you know, we certainly are at a point in scale, where that is a possibility. And we’ll look at that once we’re past this lawsuit with the SEC.”
The Crypto Market Is in Woes
Garlinghouse’s comments come amid a cryptocurrency price crash that has wiped billions of dollars of value off of the market. XRP is also down 42% in the last 30 days, according to CoinGecko.
Crypto-related stocks have also been hammered. Coinbase shares are down 75% this year, while Robinhood, which offers digital currency trading, has seen its stock drop nearly 50%.
Despite that, Garlinghouse said the business continues to grow. In the first quarter of the year, volume for its cross-border payments product that uses XRP known as On-Demand Liquidity totaled $8 billion versus $1 billion in the same period last year.
“Our growth is almost all outside the United States. I think that’ll probably persist until we get the clarity and certainty in the U.S. we’ve been seeking,” Garlinghouse said.
XRP Is Set to Rally
The price of Ripple is expected to reach its best week of the year in 2022. It is because the bulls are starting to take over the trade. Ripple is also expected to break out once the pennant formation is completed. It will happen eventually as the demand and the inflow of funds continue to rise.
After the formation of the pennant, the price of XRP might reach its next resistance level at around $0.4228. However, this level will not be fundamental as it has been broken many times before. Instead, the monthly S1 will be the next key support at around $0.48.
Although the price of XRP is expected to fall short of the resistance level at around $0.4228, it will be difficult for bears to short the asset as the bulls will remain in control for the long term.
A daily close above the resistance level at around $0.48 will be crucial for the bulls as it will allow them to extend the rally and reach the next resistance level at about $0.50, and a possible extension to $0.62 is likely.
The rise of inflation is a key theme for 2022, as it affects everyday people and businesses. Without sufficient funds to support the price movement in cryptocurrencies, investors might not support the sector. Notably, the rise of inflation is expected to trigger a reevaluation of the assets. It could set back the price target of the current market.