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

The post Ripple CEO Halts IPO Plans in U.S., Blames SEC’s Regulatory Environment appeared first on Coinpedia Fintech News

Brad Garlinghouse, the CEO of Ripple, has recently declared a pause on its initial public offering (IPO) plans in the United States. This surprising withdrawal is deemed strategic and primarily due to regulatory hurdles. Garlinghouse voices that the company finds itself navigating through a “hostile” regulatory atmosphere, thus prompting Ripple to consider alternative markets for its IPO.

Regulatory Hurdles

Garlinghouse revealed that Ripple has preferred international markets with clearer regulatory frameworks, considering the regulatory uncertainty and challenges posed by the U.S. Securities and Exchange Commission, with its present Chair – Gary Gensler. 

Garlinghouse’s statements cited the Coinbase legal saga as an example, which faced legal issues despite obtaining S-1 approval.

Expressing his dissatisfaction with the SEC’s approach to crypto regulation, Garlinghouse referred to SEC Chair Gary Gensler as a “political liability.” 

IPO and Share Buyback Strategy

Garlinghouse has cooled down the wild market speculations, clarifying that Ripple has paused any immediate IPO plans in the U.S. However, he maintained an openness, by suggesting there might be potential reconsideration in the future with new regulators at the SEC “because at some point, Gary Gensler won’t be the Chair of the SEC.”

Future Plans

Despite the IPO pause, Garlinghouse affirmed that going public is not an immediate priority for Ripple. Emphasizing shareholder liquidity, Ripple recently conducted a strategic share buyback, repurchasing over $1 billion of its stock, demonstrating the company’s commitment to long-term investors.

As Ripple evaluates its options, currently pausing its plans on the U.S. IPO. Shedding light on the present regulatory landscape in the country, which Brad Garlinghouse thinks is unfavourable for any further expansion of the company.