Ripple CEO Brad Garlinghouse has revealed that the company explored IPO options outside the United States, attributing this decision to a challenging relationship with the U.S. Securities and Exchange Commission (SEC).
Speaking at the World Economic Forum in Davos, Switzerland, Garlinghouse expressed concerns about the U.S. Securities and Exchange Commission’s stance. Despite Ripple’s interest in going public, the firm has temporarily shelved its IPO plans amidst the ongoing legal battle with the SEC.
“Hostile Regulator” SEC and “Political Liability” Gensler
“In the United States, trying to go public with a very hostile regulator that’s approved your S-1, that doesn’t sound like a lot of fun to me,” said Garlinghouse. You know, Coinbase obviously had their S-1 approved and now the SEC is suing them for doing things that were outlined in their S-1.”
Garlinghouse emphasized that the SEC Chair Gary Gensler made the environment worst, saying, “I do think the chair of the SEC, Gary Gensler, is a political liability in the United States.”
“And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it,” said Garlinghouse. “I think at some point there will be a new chair of the SEC, and I think that will be a good thing for the American people.”
Ripple Eyes IPO Outside U.S.
Due to the “hostile” operation environment posed by the regulator, Garlinghouse claimed that the company is looking into an IPO outside the U.S. “We have looked at other jurisdictions that have clear rules of the road,” said Garlinghouse.
However, he also stated that Ripple does not need an exigent IPO for its development. “Honestly, a lot of people go public because they need to raise capital,” said Garlinghouse. “Ripple’s not really in a place where we need to raise capital.”
“It is not a short-term priority. We’re obviously keeping that option open, and we’ll evaluate it,” he added.
Regarding the crypto market in 2024, Garlinghouse voiced his cheerful expectations. “I am very optimistic about the crypto market in 2024,” said Garlinghouse. “We focused on solving real problems for customers and not just the speculative cycle.”
“I think we’ll put the whole industry on a really good trajectory,” he concluded.
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