Crypto News- In an exclusive interview with CNBC at the World Economic Forum in Davos, Switzerland, Ripple CEO Brad Garlinghouse revealed that an immediate initial public offering (IPO) in the U.S. is not a top priority. Garlinghouse pointed to the perceived ‘hostile’ stance of the Securities and Exchange Commission (SEC) towards the crypto industry as a significant factor influencing Ripple’s decision.
Ripple CEO Links SEC’s ‘Unfriendly’ Crypto Policies to Decision of Postponing IPO Priority
“Attempting to go public with a regulator that is seemingly unfriendly to the crypto space, where they have to approve your S-1, doesn’t sound like an enjoyable process,” remarked Garlinghouse. He drew attention to Coinbase’s situation, noting that despite having their S-1 approved, they now face legal action from the SEC for actions outlined in their prospectus.
Referring to Coinbase’s ongoing case with the SEC, Garlinghouse indicated that Ripple aims to avoid subjecting itself to further regulatory hostility, highlighting the scheduled federal court hearing as evidence of their cautious approach.
While previously expressing an intention to consider a public listing after resolving their SEC lawsuit initiated in 2020, Garlinghouse mentioned that Ripple had explored international markets for an IPO but has currently put those plans on hold.
“We’ve explored jurisdictions with clear regulatory frameworks, but given that Ripple doesn’t urgently require capital, it’s not a short-term priority. We’ll keep the option open and reassess as regulatory dynamics evolve, especially with new regulators at the SEC,” explained Garlinghouse.
Ripple Anticipates a Regulatory Framework for Clear Guidance
The Ripple CEO characterized the current SEC Chair, Gary Gensler, as a “political liability” and anticipated a positive shift with a new chair in the future.
Despite considering an IPO as a step in the company’s journey rather than an exit for investors, Garlinghouse emphasized the importance of shareholder liquidity. Ripple, being cash flow positive for the past few years, recently initiated a $285 million share buyback, valuing the company at $11 billion.
In discussing the ongoing SEC lawsuit, Garlinghouse noted the judge’s ruling in July, which sent the case to trial but recognized XRP as not a security on the secondary market. He emphasized Ripple’s commitment to providing liquidity to investors and highlighted the dismissal of charges against its executives in October.
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