Ripple Set for IPO as XRP SEC Appeal Likely to Fail, Predicts John Deaton

XRP is back in the spotlight as speculation swirls around the SEC’s plans to appeal its partial loss in the Ripple case. The SEC must submit its appeal brief by January 15, and the crypto world is watching closely. Adding fuel to the discussion, attorney and XRP advocate John E. Deaton has shared predictions that Ripple could go public with an IPO by late 2025 or early 2026. However, this depends on whether Paul Atkins is confirmed as the next SEC Chairman.

Deaton believes the SEC is likely to withdraw its appeal, clearing the way for Ripple to focus on growth and a potential IPO. Here’s why he thinks the SEC’s case doesn’t hold up.

Why the SEC May Drop Its Appeal

According to Deaton, the SEC faces significant hurdles in continuing its legal fight:

1. Limited Impact of the Ruling: Judge Torres’ decision isn’t binding on other cases and doesn’t broadly apply to all cryptocurrency sales. It narrowly focused on the SEC’s inability to prove that XRP sales in the secondary market were securities under the Howey Test.
2. Challenges in Court: Even if the SEC wins on appeal, the case would likely return to Judge Torres. She could still rule against the SEC on other legal grounds, making the appeal less impactful.
3. Risk of Supreme Court Loss: If the SEC escalates the case to the Supreme Court, it risks a ruling that could set a precedent favoring cryptocurrencies. The SEC would likely want to avoid such a scenario.

Deaton suggests that under new leadership, such as Paul Atkins, the SEC would see the risks and decide to withdraw the appeal. This resolution would likely include Ripple paying a fine, ending the long-standing case.

Ripple’s Next Move: IPO and Market Growth

If the SEC withdraws its appeal, Ripple would have a clear path to focus on growth, including a public listing. Deaton predicts Ripple could launch an IPO by late 2025 or early 2026, marking a significant step for both the company and the crypto industry. An IPO would provide Ripple with greater resources, legitimacy, and opportunities to expand its reach.

For XRP, this could mean new price milestones. Analysts believe the token could surpass its 2021 all-time high of $3 and possibly climb to $19 if regulatory clarity boosts investor confidence.

Criticism of the Torres Ruling

Despite the optimism, Deaton acknowledges that Judge Torres’ ruling has its critics. Some legal experts, including Judge Rakoff in the same district, have questioned its reasoning. The decision’s narrow focus means it doesn’t exonerate all secondary market sales of digital assets, but rather highlights the SEC’s failure to meet the Howey Test criteria in this specific case.

Even if the SEC were to win on appeal, the case could still return to Judge Torres, who might use other factors from the Howey Test to reach the same conclusion. This makes an appeal a risky and potentially futile move for the SEC.

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A Landmark Opportunity for Ripple

A resolution in Ripple’s favor could signal a turning point for the crypto industry. Ripple’s ability to go public would highlight how regulatory clarity can foster growth and innovation. The IPO would not only strengthen Ripple but also set an example for other crypto companies aiming to navigate compliance and expansion.

Deaton’s predictions point to a positive outcome: XRP reaching new highs, Ripple leading the charge in crypto innovation, and the SEC moving toward more practical regulatory approaches.