Ripple CEO Says IPO Is A Possibility, But SEC Boss Poses A Challenge

Chief Executive Officer (CEO) of Ripple, Brad Garlinghouse, has opened up about the prospects of making Ripple public through an Initial Public Offering (IPO). However, he revealed that such a move is not presently a priority for the company, citing the unfavorable regulatory environment in the United States. 

Ripple CEO Weighs Prospects Of An IPO

In a recent interview on CNBC, Garlinghouse delved into Ripple’s strategic plans for 2024 and the possibility of going public soon. When asked what the company’s focus and outlook for 2024 might be, Garlinghouse indicated that the company’s primary priorities would be on sustained investments in its core product, the Ripple payments system. 

He disclosed the company’s intention to expand its presence in additional payment and vertical markets globally while also reinforcing its position in the custody market, which it extended into 2023. 

Addressing inquiries about profitability and revenue growth expectations in 2024, the Ripple CEO mentioned that Ripple has already achieved a significant milestone in buying back over a billion dollars worth of stocks from its shareholders. He emphasized the importance of the company’s buy-back initiative, underlining that a Ripple IPO was not a priority for the company at the moment. 

Garlinghouse expressed reservations about going public in the US due to its challenging regulatory landscape, particularly with the United States Securities and Exchange Commission (SEC). When asked whether Ripple intends to keep its potential IPO launch on hold or explore options outside the US, Garlinghouse affirmed with a positive “Yes.”

He further emphasized, “I don’t think of an IPO as an exit. I think of an IPO as a step to the journey.”

The Ripple CEO disclosed that the company had reviewed other regulatory-friendly jurisdictions outside the US. However, he stated that prioritizing an IPO was not currently on Ripple’s agenda because the company does not need to raise capital. 

Despite this, Garlinghouse has affirmed that the possibility of pursuing an IPO will remain open until the need arises. 

Garlinghouse Declares SEC A Liability

During his interview, Garlinghouse labeled the US SEC Chairman, Gary Gensler, as a “political liability” within the US. The Ripple CEO underscored the SEC’s numerous setbacks in its effort to regulate cryptocurrency, citing multiple losses in lawsuits and stringent enforcement measures. 

In addition to the legal dispute with Ripple, the SEC has also filed lawsuits against various crypto companies and exchanges. The agency’s attempt to block the entry of Spot Bitcoin ETFs from the crypto market was unsuccessful after the US Court of Appeals ordered the agency to remove its rejection of Grayscale’s Spot Bitcoin ETF application. 

Garlinghouse acknowledged the potential for challenges in approving Ethereum Spot ETFs but expressed confidence in its eventual acceptance. He asserted that the SEC’s actions were not driven by the best interests of the citizens or the long-term growth of the economy. Additionally, he disclosed his belief that a new SEC Chairman would bring positive changes to America.