“Crypto Industry Hindered by SEC in the USA: Ripple’s CEO Contemplates Foreign Stock Exchange Listing Amid Regulatory Hostility”
In the world of cryptocurrencies, Ripple Labs, the creator of XRP, has long considered going public. However, due to the unfriendly regulatory environment towards crypto-assets in the United States, Ripple’s CEO is now considering seeking a foreign jurisdiction for the initial public offering (IPO).
The SEC and the U.S. government’s anti-crypto stance has driven many industry players away. Despite legal victories for Ripple against the SEC, the regulatory landscape in the U.S. remains unclear and unconstructive, as described by Ripple’s CEO, Brad Garlinghouse, in an interview with CNBC.
“Going public is not a short-term priority. In the United States, trying to go public with a regulator that is very hostile, which must approve your Form S-1 (editor’s note: a form for a financial security to be traded on the stock exchange), doesn’t sound like much fun to me. (…) Coinbase notoriously got their S-1 approved, and now the SEC is suing them for things that were described in their S-1! (…) I think it’s a good indication of why we don’t want to subject ourselves to the whims of an SEC that is openly hostile to this industry.”
Brad Garlinghouse, CEO of Ripple
Garlinghouse then explains that a stock exchange listing would be much more feasible outside the United States. However, he doesn’t seem particularly eager to proceed with the IPO at this time.
“We have looked at other jurisdictions that have much clearer rules [on cryptocurrencies]. (…) But honestly, many companies go public because they need to raise capital. Ripple is not particularly in a situation where we need to raise funds, so it’s not a priority. We obviously keep that option open, and we will evaluate it as time goes on. We will reassess when new regulators sit at the U.S. SEC.”
Brad Garlinghouse, CEO of Ripple
Like many others, Garlinghouse sees Gary Gensler, the current SEC chairman, as a significant obstacle for the digital asset sector in the USA. He believes that Gensler’s departure and replacement would be “a good thing for the American people.” Given Gensler’s testimony before the U.S. Congress, it seems that many lawmakers would also welcome a change from Gary Gensler’s leadership.
