Ripple CEO Brad Garlinghouse revealed the progress of the IPO during the World Economic Forum, stating that they are currently considering conducting it outside of the United States. He emphasized that the consideration of an IPO in the US would only happen if the SEC changes its chairman. However, he also emphasized that an IPO is not Ripple’s top priority.
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Ripple considers IPO outside the US
Conditions for considering a US IPO: SEC chairman change
IPO is not Ripple’s top priority
Ripple considers IPO outside the US
Brad Garlinghouse stated that Ripple has considered listing in other “jurisdictions with clear regulations” due to the SEC’s enforcement actions, which have prevented Ripple from conducting an IPO in the US.
He said:
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In the US, trying to get regulatory agencies that are hostile towards you to approve your S-1 listing document doesn’t sound very appealing to me. Coinbase, on the other hand, was clearly approved for listing, and now the SEC is suing Coinbase for the business described in its S-1 filing.
Note: The S-1 document is a filing required by the SEC for companies seeking to go public. It covers financial and management team information, aimed at providing transparency to investors for investment decision-making.
Conditions for considering a US IPO: SEC chairman change
Brad Garlinghouse emphasized that SEC Chairman Gary Gensler’s actions have political motives, and under such political burdens, the SEC’s actions do not serve the public interest nor the interests of long-term economic growth.
He believes that at some point, there will be a new chairman at the SEC, which would be a good thing for the American public, and Ripple would consider going public in the US.
IPO is not Ripple’s top priority
Brad Garlinghouse revealed that going public is not an immediate priority, and Ripple will continue to evaluate it in the future.
Reuters reported earlier this month that Ripple Labs plans to buy back $285 million worth of shares from early investors. Brad Garlinghouse confirmed this:
“Our investors invested in Ripple for the first time in 2012. They have been involved in this transaction for eleven and a half years. We want to provide liquidity, and that’s one of the reasons we’re doing these tender offers.”
The SEC did not respond to CNBC’s request for comment.
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Ripple Labs: Plans to buy back $285 million worth of shares, still not planning to go public in the US
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Brad Garlinghouse
Ripple
Further reading
Ripple Labs: Plans to buy back $285 million worth of shares, still not planning to go public in the US
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