The ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has forced Ripple, one of the top blockchain technology and payments companies in the U.S., to start exploring international markets for its initial public offering (IPO).
This was revealed by CEO Brad Garlinghouse during the World Economic Forum in Davos, Switzerland.
Ripple is seeking environments with clear and well-defined regulations for crypto companies. Garlinghouse stated, “We looked at other jurisdictions that have clear rules of the road.” The regulatory uncertainty in the U.S., particularly the SEC’s continued antagonistic approach, has become a significant hurdle for Ripple’s public offering aspirations.
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Despite earlier intentions to go public after resolving the SEC dispute, Ripple has temporarily shelved its IPO plans. Garlinghouse recently revealed this after disclosing a massive share buyback.
Garlinghouse cited the SEC’s approval process as a major deterrent, describing it as an unpleasant prospect. He stated, “In the United States, trying to go public with a very hostile regulator that has to approve your S-1 doesn’t sound like a lot of fun to me.”
He further pointed to the seemingly contradictory case of Coinbase, whose IPO registration was approved by the SEC, only to be followed by a lawsuit concerning actions explicitly disclosed in the filing. This, he argued, raises concerns about subjecting Ripple to an openly hostile regulatory body.
When Will Ripple Go Public?
Going public is not an immediate priority for Ripple. Unlike companies seeking capital through IPOs, Ripple does not face an urgent need for funding. Instead, the company has prioritized providing liquidity to its shareholders by buying back $1 billion worth of its stock.
Garlinghouse explained that the company has investors who came in back in 2012 and have been with the company for over a decade. According to the CEO, giving these investors liquidity was the reason for the recent tender offers.
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However, not all companies in the U.S. share Ripple’s status, as the USDC stablecoin issuer Circle has filed a confidential IPO submission in the U.S.
This is not the first time Ripple has looked to other countries for business. In September last year, Garlinghouse shared his frustrations with the SEC’s behavior in an interview and stated that 80% of Ripple’s hiring in 2024 would be overseas.
Ripple’s exploration of overseas IPO options and more opportunities reflects a growing trend of crypto companies seeking more supportive regulatory environments and clearer frameworks abroad. If the SEC continues its strict regulatory approach, it could push more companies and jobs out of the United States.
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