Ripple Boss Says IPO Not Coming Anytime Soon Amid SEC Hostility
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In a recent interview with CNBC at the World Economic Forum (WEF) in Davos, Switzerland, Ripple CEO Brad Garlinghouse revealed that the company is not rushing to go public in the U.S. market due to the “hostile” stance of the Securities and Exchange Commission (SEC), according to The Block.
Garlinghouse criticized the lack of clarity and consistency in U.S. crypto regulation, citing the SEC’s lawsuit against Coinbase, a leading crypto exchange with an approved IPO.
“Trying to go public with a very hostile regulator that has to approve your S-1—that doesn’t sound like a lot of fun to me,” remarked Garlinghouse, pointing out that despite Coinbase’s approved S-1, the SEC is now suing them for actions outlined in their IPO filing.
Ripple, currently engaged in a protracted legal battle with the SEC over allegations of selling XRP as an unregistered security, has opted to delay any U.S. initial public offering until the lawsuit is resolved.
Ripple Is in a Good Place; It Doesn’t Need an IPO for Cash Inflows: Garlinghouse
Despite exploring other jurisdictions with clearer regulatory frameworks, Garlinghouse emphasized that Ripple, being cash flow positive for the past few years, doesn’t require immediate capital infusion through an IPO.
“We have looked at other jurisdictions that have clear rules of the road, but honestly, a lot of people go public because they need to raise capital,” said Garlinghouse. “Ripple is not really in a place where we need to raise capital, and so it is not a short-term priority.”
Expressing dissatisfaction with the current SEC Chair, Gary Gensler, Garlinghouse labeled him a “political liability” and expressed hope for a more crypto-friendly replacement.
Highlighting Ripple’s expansion in Europe and Africa, Garlinghouse emphasized the company’s commitment to providing cross-border payment solutions using XRP.
Despite the legal challenges, Ripple initiated a $285 million share buyback last week, valuing the company at $11 billion.
Garlinghouse stressed that an IPO would not serve as an exit for investors but rather as a strategic step in Ripple’s ongoing journey, emphasizing the importance of shareholder liquidity.
