Ripple CEO: IPO in the U.S. Not a Priority Due to Hostile Regulator
Speaking at the World Economic Forum, Ripple CEO Brad Garlinghouse stated that an initial public offering (IPO) in the U.S. is not a priority for the company due to a “hostile” securities regulator. He referred to Coinbase’s S-1 approval followed by the SEC’s lawsuit against them as an example. Garlinghouse mentioned that Ripple had explored markets outside the U.S. for an IPO but has put those plans on hold.
Ripple Awaits Clear Rules of the Road
Gralinghouse mentioned that Ripple has looked at other jurisdictions with clear regulations but clarified that raising capital is not a short-term priority for the company. He also expressed his dissatisfaction with SEC Chair Gary Gensler, calling him a “political liability.” Despite this, Garlinghouse sees an IPO as a step in Ripple’s journey rather than an exit strategy for investors.
Ripple’s Financial Position and Legal Battle with the SEC
Ripple has been cash flow positive for several years, enabling it to invest in operations and acquisitions. The company recently initiated a $285 million share buyback. Ripple’s ongoing lawsuit with the SEC, which started in 2020, is currently awaiting trial after a federal district judge refused to grant a summary judgment on the status of XRP as an unregistered security.
Coinbase vs. the SEC
The SEC filed a lawsuit against Coinbase last year, accusing them of violating national securities laws. Today’s hearing in federal court will determine the outcome of Coinbase’s motion challenging the SEC’s claims. The potential outcomes include an outright win for the SEC, an outright victory for Coinbase, or narrower victories for either party.
Hot Take: Ripple Delays U.S. IPO Plans Due to Hostile Regulator
Ripple CEO Brad Garlinghouse revealed that an IPO in the U.S. is not a priority for the company due to the hostility of the securities regulator. The ongoing lawsuit between Ripple and the SEC has further solidified their decision to put IPO plans on hold. While Ripple has explored other jurisdictions with clearer regulations, raising capital is not an immediate concern for the company. Garlinghouse sees an IPO as a step in Ripple’s journey and aims to provide liquidity for long-term investors. Despite facing legal challenges, Ripple remains financially stable and recently initiated a significant share buyback.
By
By
By
By
By