Ripple CEO Halts U.S. IPO Plans, Citing SEC’s Regulatory Environment

Brad Garlinghouse, CEO of Ripple, has made an unexpected announcement that the company will be putting its initial public offering (IPO) plans in the United States on hold. The decision is said to be a strategic move and is primarily due to regulatory obstacles. Garlinghouse has expressed that Ripple is facing a challenging regulatory environment, which has led the company to explore alternative markets for its IPO.

Garlinghouse revealed that Ripple is now looking towards international markets that have clearer regulatory frameworks. This decision comes as a result of the regulatory uncertainty and difficulties posed by the U.S. Securities and Exchange Commission (SEC), particularly under the leadership of its current Chair, Gary Gensler. Garlinghouse used the Coinbase legal case as an example of the challenges faced by companies in the crypto industry, despite obtaining approval from the SEC.

Expressing his dissatisfaction with the SEC’s approach to crypto regulation, Garlinghouse referred to Gary Gensler as a “political liability.” He believes that the regulatory environment needs to change in order for Ripple to consider an IPO in the U.S. in the future, suggesting that new regulators at the SEC may lead to a different outcome.

While Ripple has paused its immediate IPO plans in the U.S., Garlinghouse made it clear that going public is not a top priority for the company at the moment. Instead, Ripple has recently conducted a strategic share buyback, repurchasing over $1 billion of its stock. This move demonstrates Ripple’s commitment to its long-term investors and emphasizes the importance of shareholder liquidity.

As Ripple evaluates its options, the company has decided to put its U.S. IPO plans on hold. Garlinghouse believes that the current regulatory landscape in the country is not favorable for further expansion of the company.

Tags: Ripple (XRP)