Pro-XRP Lawyer Weighs in on Why USDC Issuer Circle Rejected Ripple’s $5 Billion Buyout Offer 

Ripple’s $5 billion deal to acquire stablecoin issuer Circle has sparked a major debate amongst crypto proponents within the XRP community.

Attorney John Deaton, a reputable trial lawyer known for his pro-Ripple and XRP outlook, has taken to X, formerly Twitter, to share his position. According to Deaton, Circle’s refusal to sell to Ripple at a $5 billion offer is backed by an optimistic bet that the firm’s valuation could skyrocket in the long term.

According to a Bloomberg report, Circle, the peer-to-peer payments technology that manages the USDC stablecoin, rejected the offer because it considered it significantly low.

“Circle’s rejection of the $5B offer suggests Circle believes its market value, particularly post-IPO, is likely to exceed $5 billion, possibly approaching or surpassing the $9 billion from its 2022 SPAC attempt.” Deaton writes. 

The notable shift across regulatory bodies, particularly the SEC, has placed crypto in a less hostile environment. The new development, expected to usher in the approval of the STABLE GENIUS Act, validates Circle’s expectations of a higher deal, particularly around the $10 billion level, Deaton added.

Circle first filed for its S-1, a form used to register securities offerings with the SEC, on April 1, 2025, ahead of plans to debut under the “CRCL” ticker on the NYSE. 

Key underwriters for the firm include leading investment banking firms Citigroup and JP Morgan Chase. Although the stablecoin issuer failed to hit its $9 billion valuation target from its failed SPAC deal in 2022, Deaton notes that expectations for the firm’s IPO sit between $4 billion and $5 billion in valuation, further amplifying Circle’s decision to decline the offer.

In 2024, Circle reported yearly profits of $156 million. Although significantly lower than its $1.67 billion revenue recorded in the same year, the metrics came after the firm paid off 60% of its revenues to distributors like Coinbase.