The CEO of Ripple, Brad Garlinghouse, has discussed the potential of taking Ripple public through an Initial Public Offering (IPO). However, he mentioned that the company is currently not focused on this idea, mainly due to the unfavorable regulatory environment in the United States.
Ripple CEO Considers IPO
In a recent interview on CNBC, Garlinghouse talked about Ripple’s strategic plans for 2024 and the chances of going public. He emphasized that the company’s main priorities for 2024 include continuous investments in its core product, the Ripple payments system. Furthermore, he revealed the company’s intentions to expand into additional payment and vertical markets globally while reinforcing its position in the custody market.
When asked about profitability and revenue growth expectations in 2024, Garlinghouse noted that Ripple has already bought back over a billion dollars worth of stocks from its shareholders. He stressed the significance of the company’s buy-back initiative and stated that an IPO was not a priority at the moment.
Garlinghouse expressed concerns about going public in the US due to the challenging regulatory landscape, particularly with the United States Securities and Exchange Commission (SEC). He confirmed that Ripple is considering options outside the US for its IPO launch.
He further emphasized that “I don’t think of an IPO as an exit. I think of an IPO as a step to the journey.”
Although the company has reviewed regulatory-friendly jurisdictions outside the US, Garlinghouse stated that prioritizing an IPO was not on Ripple’s agenda as the company does not need to raise capital. Despite this, he affirmed that the possibility of pursuing an IPO will remain open until the need arises.
Garlinghouse Declares SEC A Liability
During the interview, Garlinghouse referred to the US SEC Chairman, Gary Gensler, as a “political liability” within the US. He highlighted the SEC’s setbacks in regulating cryptocurrency and mentioned their losses in lawsuits and stringent enforcement measures.
Aside from the legal dispute with Ripple, the SEC has filed lawsuits against various crypto companies and exchanges. The agency’s attempt to block the entry of Spot Bitcoin ETFs from the crypto market was unsuccessful after the US Court of Appeals ordered the agency to remove its rejection of Grayscale’s Spot Bitcoin ETF application.
Garlinghouse acknowledged the potential challenges in approving Ethereum Spot ETFs but expressed confidence in their eventual acceptance. He stated that the SEC’s actions were not in the best interests of the citizens or the long-term growth of the economy. Additionally, he expressed his belief that a new SEC Chairman would bring positive changes to America.
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