Ripple CEO says Ripple is considering IPO outside the US amid ‘hostile’ SEC environment



Ripple CEO Brad Garlinghouse told CNBC that the company was actively exploring markets outside the United States in preparation for its long-awaited initial public offering (IPO).

Garlinghouse said the strategic move was due to the “hostile” regulatory environment in the United States. Nevertheless, the company has currently suspended any intention to pursue an IPO.

Ripple explores global IPO options amid regulatory challenges

The decision to pursue an IPO across U.S. borders comes as Ripple pursues a legal battle with the U.S. Securities and Exchange Commission (SEC), which began in 2020 and is still unresolved. has not yet been reached.

The CEO previously said he would seek to list the company once the regulatory dispute is concluded. Speaking at the World Economic Forum in Davos, Switzerland, Garlinghouse shed light on Ripple’s decision to look beyond the borders of the United States.

He said the company considered jurisdictions with “clear rules of the road” to facilitate a smooth IPO process. Ripple’s CEO expressed dissatisfaction with the SEC’s stance, highlighting the challenges faced by companies attempting to go public amid regulatory scrutiny.

He noted that despite the SEC’s previous approval of the S-1 filing, the SEC’s decision to file a lawsuit against Coinbase, a U.S.-based cryptocurrency exchange that was later sued for alleged violations outlined in the S-1. The lawsuit drew attention.

“Trying to go public in the United States with a very hostile regulator who has approved your S-1 doesn’t seem like much fun to me,” Garlinghouse said.

The S-1 is an important document filed with the SEC prior to an IPO and discloses financial performance and key investment risks.

Garlinghouse tips for reconsidering U.S. listing

Garlinghouse criticized current SEC Chairman Gary Gensler, calling him a “political liability.” He also expressed optimism about a more favorable regulatory environment under the new SEC chief and suggested a U.S. listing might be reconsidered.

“Now that we have a new regulator at the US SEC, we will reevaluate it,” he said. Nevertheless, he made it clear that going public is not an immediate priority for Ripple.

The CEO also disclosed the company’s recent financial trends. Garlinghouse emphasized the company’s focus on shareholder liquidity, announcing a $1 billion share buyback to provide liquidity to early investors who have been with Ripple for more than 10 years. I confirmed the plan.

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