Ripple’s CEO, Brad Garlinghouse, has suggested that the company is contemplating the idea of conducting its initial public offering (IPO) in overseas jurisdictions instead of going public in the United States. Garlinghouse made this revelation during an interview at the 2024 Consensus conference, expressing his belief that it would not be logical for Ripple to pursue an IPO in the U.S.
The interviewer asked Garlinghouse directly about Ripple’s plans to go public, to which he responded by stating that an IPO is not currently on the company’s immediate agenda. He attributed this decision to the leadership of the U.S. Securities and Exchange Commission (SEC) under Chairman Gary Gensler. According to Garlinghouse, Ripple’s S-1 registration statement for an IPO would need to be approved by the SEC, and he has doubts about obtaining a favorable outcome.
Garlinghouse proceeded to draw a comparison between the forward-thinking approach of Lynn Martin, the president of the New York Stock Exchange (NYSE), who expressed openness to applications from crypto-related companies like Ripple, and the stance of SEC Chairman Gensler. While Garlinghouse praised Martin’s progressive outlook, he lamented that Gensler’s position does not align with this mindset.
Based on these circumstances, Garlinghouse concluded that it would be illogical for Ripple to pursue a U.S. IPO at the present time, stating, “Going public in the United States for Ripple right now doesn’t make any sense.” A pseudonymous XRP enthusiast highlighted Garlinghouse’s statement in a recent post on X.
To further support his standpoint, Garlinghouse referred to the situation with Coinbase, the leading U.S.-based exchange. He pointed out that the SEC had initially approved Coinbase’s IPO statement, which detailed the company’s business operations. However, the regulator subsequently took legal action against Coinbase, accusing it of facilitating the trade of allegedly unregistered crypto assets, contradicting its earlier approval. Garlinghouse suggested that Coinbase might now regret its decision to go public in the U.S. due to the SEC’s subsequent actions.
In light of these developments, Garlinghouse revealed that Ripple is exploring the possibility of conducting its IPO outside of the United States. He indicated that considering international options for going public is one of the potential strategies that Ripple may pursue in response to the current regulatory environment.
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