Court XRP Sales Ruling Holds IPO Key

• Ripple seeks legal clarity to enable private XRP sales before potential IPO launch.
• Settlement and court ruling are vital to Ripple’s IPO timeline and legal certainty.
• SEC procedures may delay Ripple’s IPO plans until at least early 2027.

Ripple Labs is actively pursuing an indicative ruling from the U.S. District Court as it prepares for a possible initial public offering (IPO). This is a key move as the company gets closer to the end of its long legal fight with the Securities and Exchange Commission (SEC). 

Legal experts see this as Ripple making a strategic move to get clear guidance on its ability to make private XRP sales in the future. These sales are seen as critical for the company’s IPO preparations – a major goal for Ripple.

Why is Ripple Making This Legal Push Now?

Significantly, digital asset lawyer James Farrell believes that Ripple is targeting a settlement alongside a court-endorsed modification of a prior judgment. That modification would specifically allow Ripple to sell XRP privately, something seen as essential before trying to go public. 

Without such clarity, Ripple faces a tough path to launch an IPO within the next three years. And internal administrative requirements at the SEC could also complicate the process.

Ripple’s Legal Strategy Involves Multiple Fronts

Ripple’s strategy involves submitting both a settlement offer and a request for that indicative ruling on the modification. These requests could be filed together or separately, depending on what its lawyers decide is the best approach. 

Related: Motion Granted: Second Circuit Court Pauses SEC vs Ripple Appeal for Talks

The goal is to ease legal uncertainties and prevent regulatory obstacles from blocking future fundraising plans. Farrell notes a settlement may be more straightforward to get, while securing the court’s modification could be tougher.

What Happens if Ripple and the SEC Settle?

Even if the SEC agrees to settle, Ripple still has to ask Judge Analisa Torres to formally modify the earlier judgment. Farrell estimates this step will take about six months for the judge to make a decision. 

After that decision, if it goes Ripple’s way, both sides would likely return to the appeals court. They would wrap things up there with a voluntary dismissal, adding about another month to the timeline.

What Are the Risks if the Court Says No to Ripple’s Request?

But, if Judge Torres denies the request to modify the judgment, the legal fight would return to the appeals court. This could extend proceedings well into early 2027. These legal maneuvers are seen as Ripple’s effort to avoid further delays in its business roadmap, especially its IPO aspirations.

Related: SEC Actions Across Binance, Ripple Suggest Coordinated Resolution Push

Meanwhile, XRP is trading at $2.08, showing a weekly gain of over 7%. Despite a slight 24-hour decline, its market cap remains robust at over $121 billion.