Ripple CEO Considers IPO Amid Regulatory Concerns
In a recent interview, Ripple CEO Brad Garlinghouse discussed the company’s strategic plans for 2024 and the possibility of going public through an Initial Public Offering (IPO). However, he stated that an IPO is not currently a priority for Ripple due to the unfavorable regulatory environment in the United States.
Ripple’s Focus and Outlook for 2024
Garlinghouse revealed that Ripple’s main priorities for 2024 include sustained investments in its core product, the Ripple payments system. The company also intends to expand its presence in additional payment and vertical markets globally while strengthening its position in the custody market. Garlinghouse emphasized that these initiatives would take precedence over pursuing an IPO.
Challenging Regulatory Landscape in the US
When asked about the possibility of delaying or exploring options outside the US for an IPO, Garlinghouse confirmed that Ripple is considering jurisdictions that are more regulatory-friendly. He expressed reservations about going public in the US due to the difficult regulatory landscape, particularly with the United States Securities and Exchange Commission (SEC).
An IPO as a Step in the Journey
Garlinghouse clarified that an IPO should not be seen as an exit strategy but rather as a step in Ripple’s journey. While the company has explored other jurisdictions, it is not currently prioritizing an IPO because it does not need to raise capital. However, Garlinghouse emphasized that the possibility of pursuing an IPO remains open for future consideration.
SEC Chairman Labeled a Political Liability
During the interview, Garlinghouse referred to SEC Chairman Gary Gensler as a “political liability” within the US. He highlighted the SEC’s setbacks in regulating cryptocurrency, including losses in lawsuits and strict enforcement measures. Garlinghouse expressed his belief that a new SEC Chairman could bring positive changes to the country and criticized the agency’s actions for not prioritizing the best interests of citizens and long-term economic growth.
Hot Take: Ripple CEO Considers IPO Amid Regulatory Challenges
Ripple CEO Brad Garlinghouse has discussed the possibility of taking Ripple public through an IPO, but the company is currently focused on other strategic priorities. The challenging regulatory environment in the US, particularly with the SEC, has led Ripple to explore regulatory-friendly jurisdictions outside the country. Garlinghouse views an IPO as a step in Ripple’s journey rather than an exit strategy. He also labeled the SEC Chairman as a political liability and expressed optimism about potential positive changes with a new SEC Chairman. While an IPO is not currently a priority for Ripple, it remains open for consideration in the future.
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