Ripple eyes IPO outside US as CEO says US listing makes no sense

Ripple CEO Brad Garlinghouse has hinted that the company is considering foreign jurisdictions for its potential IPO, saying it makes no sense to go public in the United States.

Garlinghouse gave this clue during an interview at the Consensus 2024 conference organized by CoinDesk. The interviewer asked Ripple’s CEO a direct question about whether an IPO was on Ripple’s agenda.

No IPO under Gary Gensler

In response, Garlinghouse noted that conducting an initial public offering (IPO) is not on Ripple’s immediate agenda. He attributed this position to the leadership of the US SEC under its chairman Gary Gensler. He noted that Ripple’s S-1 registration statement for the IPO must be approved by the regulator, and he is skeptical of a positive outcome.

Earlier, New York Stock Exchange (NYSE) Chairman Lynn Martin said she was open to applications from crypto-related companies like Ripple. However, Garlinghouse compared Martin’s forward-thinking attitude to that of SEC Chairman Gensler.

Specifically, he praised Martin as a shining example of where the industry should be heading, but lamented that Gensler’s position did not align with that progressive outlook.

As a result, Garlinghouse concluded that it would be unreasonable for Ripple to consider an IPO in the United States under the current circumstances, stating: “Going Ripple public in the US at this time makes no sense.”

A pseudonymous XRP enthusiast drew attention to the Ripple CEO’s statement in a recent article on X.

🧐 BRAD GARLINGHOUSE ON A FUTURE #IPO ➡️ “THIS IS NOT ON OUR IMMEDIATE AGENDA.” ➡️ « LYNN MARTIN (PRESIDENT OF #NYSE) I THINK THIS IS A PROGRESSIVE EXAMPLE OF WHERE WE NEED TO BE – IT’S NOT WHERE #GENSLER EST.” ➡️ “WE LOOKED AT, YOU KNOW, WHEN WE CONSIDER GOING PUBLIC OUTSIDE OF… https://t.co/AmZzbqaD5I pic.twitter.com/PnsMB1LYUw

–XRP DROPZ (@DROPZXRP) May 31, 2024

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Coinbase likely regrets its US IPO

Furthermore, CEO Brad Garlinghouse supported his point of view by referring to the situation of Coinbase, the leading exchange based in the United States. He pointed out that the SEC previously approved Coinbase’s IPO statement, which detailed its business operations.

However, the regulator then filed a lawsuit against the exchange, accusing it of allowing trading in allegedly unregistered crypto assets, contradicting the earlier approval. Garlinghouse suggested that in hindsight, Coinbase may regret its decision to go public in the United States due to the SEC’s subsequent actions.

IPO outside US planned

Therefore, Garlinghouse mentioned that Ripple is considering the possibility of launching its IPO outside the United States. He indicated that exploring international options to go public is among potential strategies Ripple could pursue in response to the current regulatory environment.