Cryptos paralyzed by the SEC in the USA. Ripple Labs, the company that issues XRP, has been considering going public for a while. If the crypto-company has still not launched the listing of its shares all this time, it is because of the hostile regulatory environment in the United States towards the crypto-asset sector. His boss is now even considering moving towards a foreign jurisdiction to launch this IPO.
The SEC and US government’s anti-crypto war is scaring away industry players
Within the cryptosphere, Ripple is unfortunately well placed to know to what extent the Securities and Exchange Commission (DRY) and its president Gary Gensler carry out merciless judicial harassment against crypto players.
Despite several victories for Ripple in court (and therefore so many defeats for the SEC), the American regulatory environment is still so vague and non-constructive (even anti-constructive) in the eyes of Brad Garlinghouse, the CEO of Ripple. Impossible for him to consider a Initial Public Offering (IPO) of his company, as he explains during an interview given to the CNBC channel.
“The IPO is not a short-term priority. You know, in the United States, trying to go public with a very hostile regulator, who has to approve your Form S-1 (editor’s note: form for a financial security to be traded on the stock exchange), that doesn’t sound like much fun to me. (…) Coinbase notoriously had their S-1 approved, and now the SEC is suing them for doing things that were outlined in their S-1! (…) I think this is a good indication of why we do not want to submit to the goodwill of an SEC that is openly hostile to this industry. »
Brad Garlinghouse, CEO of Ripple
An overseas IPO for Ripple?
Brad Garlinghouse then explains that an IPO of the company’s shares would be much more feasible outside the United States. However, the boss of Ripple does not seem, once again, not particularly in a hurry to proceed with this IPO.
“We studied other jurisdictions, which have rules [sur les cryptos] much clearer. (…) But honestly, a lot of companies go public because they need to raise capital. Ripple is not particularly in a situation where we need to raise funds, and so it is not a priority. We’re obviously keeping this option open, and we’ll evaluate it as time goes on. And we will evaluate it again when new regulators sit on the US SEC. »
Brad Garlinghouse, CEO of Ripple
Because, yes, like many, the crypto business manager particularly sees Gary Gensler as an obstacle for the entire digital assets sector in the USA. Brad Garlinghouse thus considers that departure and the replacement of the current president of the SEC will even be “ a good thing for the American people “. And when we see his many “pearls” before the US Houses of Congresswe say that many legislators would also like to see the Gary Gensler page.