Ripple Considering IPO Outside the US Amid Regulatory Challenges
Date: 2024-01-17 Author: Dima Zakharov Categories: BLOCKCHAIN
Ripple's Global IPO Consideration
Ripple, a leading player in the cryptocurrency world, is contemplating the prospect of conducting its initial public offering (IPO) outside the United States. This strategic move is a response to the perceived regulatory challenges within the US, according to Brad Garlinghouse, the CEO of Ripple.
A Lengthy Legal Battle
In 2022, Garlinghouse had indicated that Ripple would consider going public once its legal battle with the US Securities and Exchange Commission (SEC) was resolved. This ongoing legal saga, which commenced in 2020, has yet to reach a conclusion.
Exploring Regulatory-Friendly Jurisdictions
However, during an appearance at the World Economic Forum in Davos, Garlinghouse revealed that Ripple has been actively exploring other jurisdictions with clearer regulatory guidelines to facilitate its listing on a stock exchange.
US Regulatory Hurdles
Garlinghouse emphasized that Ripple has refrained from going public in the US primarily due to the SEC's regulatory stance, which he perceives as adversarial. He pointed out that even companies like Coinbase, which received SEC approval (S-1), have faced legal action from the regulator.
Political Accountability
In recent years, Garlinghouse has been vocal in criticizing the SEC's approach to regulating the cryptocurrency industry. He even referred to SEC Chairman Gary Gensler as a "political hindrance" and expressed optimism that a new SEC chairman might offer a more favorable regulatory environment for Ripple.
IPO Evaluation
Garlinghouse left the possibility of an IPO open but stated that it was not the immediate priority for Ripple at this time. The company will assess the situation over time.
Ripple's Recent Stock Buyback
Earlier this month, Reuters reported that Ripple had initiated a stock buyback from its shareholders. Garlinghouse confirmed this and disclosed that the company had repurchased shares worth $1 billion. This move follows a thriving year for cryptocurrencies, with Bitcoin surging over 150%, instilling confidence in some crypto firms.
Ripple's consideration of an IPO outside the US showcases the growing importance of regulatory environments in shaping the cryptocurrency landscape. As the legal battle with the SEC continues, Ripple's future plans remain uncertain, with the company keeping its options open for potential global expansion.
