Ripple CEO Brad Garlinghouse stated Ripple has “no interest” in a US IPO, citing SEC’s challenging and inconsistent crypto regulation.
Ripple CEO Brad Garlinghouse recently announced that the company’s dollar-pegged stablecoin, Ripple USD (RLUSD), is on the verge of launch. Speaking at Korea Blockchain Week, he revealed that the stablecoin is currently in a private, closed beta, with public availability expected in the coming weeks. RLUSD, designed to complement Ripple’s XRP token, marks the company’s latest venture into the burgeoning stablecoin market.
Ripple’s RLUSD Challenge to USDT and USDC
The stablecoin market, led by USDT and USDC, has long awaited a shake-up. Brad Garlinghouse hinted at this during his recent speech, highlighting Ripple’s strategic move when USDC briefly lost its peg 18 months ago. Ripple’s RLUSD now stands ready to challenge the status quo, using the company’s strong ties with financial institutions to establish a presence.
In June, Ripple President Monica Long revealed that RLUSD had undergone testing on two blockchain networks, marking significant progress. Garlinghouse’s recent statements heightened expectations, as he assured the audience that the launch was imminent, stating that it would happen in “weeks, not months”.
At the same event, Garlinghouse addressed Ripple’s stance on a potential initial public offering (IPO) in the US. His response was straightforward: Ripple has “no interest” in pursuing a US IPO due to the challenging regulatory environment shaped by the US Securities and Exchange Commission (SEC). He criticized the SEC’s inconsistent approach to crypto regulation, pointing to Coinbase’s situation, approved for a public offering but later sued by the same agency.
Garlinghouse’s remarks echo the broader dissatisfaction within the crypto industry regarding the SEC’s tactics. Ripple has faced its own legal battles, including a protracted dispute with the SEC over the classification of XRP as a security.
Recently, the company achieved a partial victory when a court reduced Ripple’s fine to $125 million, far less than the SEC’s initial $2 billion demand, while also ruling that some XRP sales did not breach securities laws.
Ripple CEO Sees Hope in Potential SEC Leadership Change
Garlinghouse is optimistic about crypto regulation, particularly with the approaching US presidential election. He believes new leadership at the SEC could emerge regardless of the election’s outcome, possibly creating a more favorable regulatory environment. Garlinghouse criticized current SEC Chairman Gary Gensler, stating that his actions have negatively impacted his political party.
His comments come as the SEC intensifies enforcement against crypto companies, like the recent case involving OpenSea. Despite these challenges, Garlinghouse remains hopeful, especially as legislative efforts like the Financial Innovation and Technology for the 21st Century Act gain momentum.
Garlinghouse also emphasized Ripple’s resilience against what he calls the SEC’s “bullying”. He acknowledged the financial and legal difficulties Ripple faced but stressed their belief in being on the right side of the law and history.
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