Ripple CEO Brad Garlinghouse revealed exclusive insights into the company's plans regarding its IPO during a CNBC interview at the World Economic Forum in Davos. Despite initially considering markets outside the U.S. for the IPO due to what Garlinghouse described as a "hostile" regulator, the firm has decided to put the offering on hold for the time being.
Garlinghouse expressed concerns about the ongoing lawsuit with the U.S. SEC, which began in 2020 and remains unresolved. He emphasized that attempting to go public in the U.S. with an adversarial regulator that had approved the S-1 filing was not an appealing prospect. Comparing Ripple's situation with that of Coinbase, Garlinghouse highlighted the challenges faced by companies navigating the SEC's regulatory landscape.
Notably critical of the SEC's approach to regulating the cryptocurrency industry, Garlinghouse referred to Chairman Gary Gensler as a "political liability." He hinted at a potential reconsideration of a listing in the United States once a new chair assumes office at the SEC.
There's no rush
While keeping the IPO option open, Garlinghouse underscored that it is not an immediate term priority for Ripple. Shareholder liquidity took center stage in the discussion, with Garlinghouse confirming that the company had repurchased $1 billion of its stock, providing liquidity to investors who have been involved with Ripple since its inception 12 years ago.
As the regulatory landscape evolves, Garlinghouse expressed a commitment to reevaluating the decision to go public in tandem with changes at the SEC. Despite uncertainties, he assured stakeholders that Ripple's focus remains on long-term sustainability, with the IPO as an option to be considered as time progresses.
Yuri Molchan
Arman Shirinyan
