Pro-XRP Lawyer Explains Why the Ripple-Circle Acquisition Deal Was Rejected

The proposed acquisition deal between Ripple and Circle was reportedly stalled despite Ripple increasing its initial offer beyond $5 billion. According to pro-XRP attorney John E. Deaton, Circle turned down Ripple’s bid due to expectations of a higher valuation post-IPO.

Circle filed its S-1 registration with the U.S. Securities and Exchange Commission on April 1, 2025. The stablecoin issuer is preparing to go public on the New York Stock Exchange under the ticker “CRCL.”

JPMorgan Chase and Citigroup are leading the offering. The company is aiming for a valuation between $4 billion and $5 billion, according to its filings.

John Deaton, who closely follows legal and regulatory developments in the digital asset space, pointed out that Circle’s refusal to accept Ripple’s $5 billion offer reflects its belief in achieving a much stronger valuation after going public.

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He also noted that Circle had previously targeted a $9 billion valuation during a 2022 SPAC deal, which ultimately failed to materialize.

Circle filed its S-1 with the SEC on April 1, 2025, planning to list on the NYSE under the ticker “CRCL,” with JPMorgan Chase and Citigroup as lead underwriters. The IPO is expected this summer. Circle is aiming for a valuation between $4 billion and $5 billion for its IPO.… https://t.co/G8WijZzg9g

— John E Deaton (@JohnEDeaton1) May 2, 2025

Favorable Regulatory Climate Strengthens Circle’s Position

Circle’s strategy suggests it expects to surpass the valuation Ripple has offered, especially as investor interest in stablecoin-related infrastructure continues to grow. The timing of its IPO, coupled with a supportive regulatory backdrop, may create conditions for a more favorable market debut.

Meanwhile, Ripple’s pursuit signals its commitment to expanding its ecosystem and gaining a foothold in the stablecoin sector. However, without agreement on valuation, the acquisition remains off the table for now.

John Deaton’s insights offer a clear explanation for the stalled Ripple-Circle talks. With Circle aiming for a higher post-IPO valuation and regulatory winds at its back, the company appears determined to test its value in the public markets rather than accept Ripple’s current offer.

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