Market News

US Ripple Delays IPO Amid Regulatory Caution and Midterm Uncertainty

Ripple has announced that it will not pursue an initial public offering (IPO) at this time, emphasizing its robust financial health after a recent $500 million funding round.

The company's decision comes as it navigates a politically charged regulatory landscape in the United States, likely waiting for more favorable conditions before considering a public listing.

Ripple President Monica Long confirmed the hold on the IPO speculation during an interview, underscoring their current focus on building the business rather than seeking external funding.

With a valuation of $40 billion post-funding, Ripple holds significant reserves, allowing it to remain private and avoid the enhanced scrutiny that accompanies public companies.

CEO Brad Garlinghouse echoed this sentiment, stating that going public is not an immediate goal as the company is well-equipped to continue growth and strategic acquisitions.

The uncertainty surrounding the 2026 midterm elections further complicates the potential for an IPO, as the outcome could significantly affect cryptocurrency regulations.

Currently, the Republican Party holds a slim Senate majority, but recent Democratic gains in key areas have created an unpredictable political environment.

Ripple's business model is heavily influenced by regulatory conditions, prompting the company to adopt a cautious approach as they await clearer signals from the electoral results.

A favorable shift in Congress post-elections might reduce the perceived risks of going public, while an unfavorable scenario could increase regulatory burdens.

This strategic patience reflects Ripple's deliberate approach in deciding the right moment for an IPO, keeping in mind the intricacies of the US political landscape.