Ripple CEO calls SEC a “hostile regulator”

Brad Garlinghouse noted that the company is considering going public outside the US

17.01.2024 - 10:40

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3 min

What’s new? Ripple has been exploring the possibility of going public through an initial public offering (IPO) outside the US, the fintech company’s CEO Brad Garlinghouse told CNBC. He said Ripple has shelved any plans for an IPO in the States due to a “hostile” Securities and Exchange Commission (SEC) and is looking “at other jurisdictions that have clear rules of the road.”

CNBC’s material

What else is known? Garlinghouse also called SEC Chairman Gary Gensler a “political liability.” He said Ripple would consider an IPO in the States if the regulator appoints a new chair. At the same time, Garlinghouse said that going public is “not an immediate term priority” for the company.

Earlier this year, Reuters journalists reported that Ripple had bought back securities from its shareholders. Garlinghouse confirmed this and noted that the transactions cost $1 billion. He emphasized the importance of the liquidity of the securities.

Circle has filed with the SEC for its IPO

The number of securities and the price range have not yet been determined

Previously, Garlinghouse advised entrepreneurs against starting a crypto business in the US, as the country is stuck in regulating digital assets compared to progress in the UAE and the European Union. Ripple itself applied for licenses in the UK and Ireland, and also received approval to provide crypto services in Singapore.

Ripple has been in litigation with the SEC since December 2020. The regulator claims that the company’s 2013 distribution of native tokens of its eponymous payment protocol (XRP) was an unregistered offering of securities.

In July 2023, the court ruled that XRP itself is not a security and could be offered to retail investors through digital exchanges. The SEC attempted to appeal the ruling but was denied.

In October, the SEC withdrew its lawsuit against Garlinghouse and Ripple Chairman Chris Larsen, but in January of the new year urged the court to order the company to file financial statements for 2022-2023 related to institutional sales.

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