- Ripple avoids a U.S. IPO due to regulatory uncertainty, particularly the SEC’s hostility.
- Ripple’s diverse political affiliations include XRP donations to Donald Trump’s 2024 campaign.
Ripple CEO, Brad Garlinghouse, has stated that the company has no plans to go public in the US. The challenging regulatory environment, particularly the SEC’s harsh treatment of cryptocurrency startups like Ripple, is a major driving force behind this decision.
BREAKING: 🇺🇸 Ripple CEO States The Company Has No Plans For United States IPO!
Ripple CEO @bgarlinghouse said the San Francisco-based company has no interest in a U.S. IPO, due to what he believes is SEC hostility toward crypto.
Overall, Garlinghouse said he is more… pic.twitter.com/WJwB24e3FU
— Good Morning Crypto (@AbsGMCrypto) September 6, 2024
Ripple CEO Urges Caution in U.S. Crypto Operations Amid SEC Conflicts
Garlinghouse highlighted the SEC’s conflicting actions in authorizing Coinbase’s public listing and then bringing a lawsuit against the business. Ripple is wary of doing an Initial Public Offering (IPO) in the United States due to regulatory uncertainty.
During Korea Blockchain Week, Garlinghouse expressed his broader concerns about the US regulatory landscape, stating that one of his top pieces of advice to crypto startups is to avoid incorporating in the United States.
He warned that doing so would certainly result in increased legal costs, a reality Ripple has seen directly in its current struggle with the SEC. Despite these hurdles, Garlinghouse voiced optimism about the crypto industry’s future, saying he is more confident than ever in the next five years.
Ripple is currently focused on extending its global footprint and resolving regulatory difficulties rather than pursuing a U.S. IPO.
In addition to these corporate decisions, Ripple’s political associations have sparked interest. According to CNF, the company’s executives have expressed support for both sides of the political spectrum, endorsing candidates in the 2024 US presidential election.
Stuart Alderoty, Ripple’s General Counsel, donated $300,000 worth of XRP to Donald Trump’s campaign, while other Ripple executives backed Kamala Harris. This exposes the company’s multiple political opinions and demonstrates a purposeful strategy for maintaining partnerships with many political forces.
Garlinghouse also emphasized the SEC’s broader impact on the cryptocurrency business. He underlined that, while the SEC wields great power, challenging the regulator requires significant resources and resolve.
Ripple has scored legal successes in its struggle with the SEC, including a court order that dramatically decreased the SEC’s initial sanctions.
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Source: https://www.crypto-news-flash.com/why-ripple-is-holding-back-from-a-u-s-public-offering/?utm_source=rss&utm_medium=rss&utm_campaign=why-ripple-is-holding-back-from-a-u-s-public-offering