Ripple CEO Brad Garlinghouse has ruled out the possibility of an initial public offering (IPO) in the United States, disappointing the XRP community. Speaking at the Korean Blockchain Week, Garlinghouse cited the unclear regulatory environment in the U.S. as the primary reason for avoiding an IPO. He emphasized that Ripple is not interested in engaging in further legal battles, especially given the challenges posed by the U.S. Securities and Exchange Commission (SEC).
Ripple has been involved in a lengthy legal dispute with the SEC, which accused the company of selling unregistered securities. Although Ripple recently secured a partial victory in the case, agreeing to pay a $125 million fine, Garlinghouse expressed concern over the ongoing regulatory ambiguity in the country. He advised other crypto firms to reconsider entering the U.S. market, warning that they could face substantial legal costs.
Garlinghouse had previously teased the possibility of a Ripple IPO outside the U.S. but has now made it clear that the company will not pursue such a move within the country.
U.S. Crypto IPOs Face Hurdles
Despite the challenging regulatory landscape, several crypto companies have filed for IPOs in the U.S. Notable firms like Circle, Telegram, and Reddit have submitted S-1 filings to the SEC. However, only Reddit has successfully gone public, debuting on the market under the ticker “RDDT” in March 2021. Other companies, including Circle and Telegram, have yet to receive approval from the SEC.
Telegram’s IPO hopes have been further complicated by legal issues involving its founder, Durov Pavel, who was recently arrested by French authorities on charges including cyberbullying and drug trafficking.
As Ripple focuses on its global expansion, the company’s decision to avoid a U.S. IPO highlights the difficulties cryptocurrency firms face in navigating the country’s complex regulatory framework.
Source: The Crypto Basic
