Because Of US Regulators, Ripple Will IPO In Crypto-Friendly Countries
JAKARTA - Ripple, a technology company that provides blockchain-based payment platform, plans an IPO (Initial Public Offering). But unfortunately, the US crypto company doesn't want to go public because of the unclear crypto rules there. To make its initial share offer, Ripple prefers an IPO in a crypto-friendly country.
This was revealed by Ripple CEO Brad Garlinghouse in an interview with CNBC at the World Economic Forum (WEF) in Davos, Switzerland, this week. Garlinghouse said that Ripple is still exploring possible IPOs outside the US, as it faces regulatory barriers from the US Securities and Exchange Commission (SEC), US capital market authority.
According to Garlinghouse, the SEC has a rapidly growing unfriendly attitude towards the digital asset sector. He gave an example of the SEC's lawsuit against Coinbase, which came after the company received approval to go public. The lawsuit concerns a loyalty program that offers returns to certain crypto holders.
Garlinghouse expressed concern about US regulators not supporting innovation in the crypto field. The Ripple boss stressed the importance of finding a conducive market for Ripple's public listing. He also said that going public is not the company's top priority, as it is still focused on business and technology development.
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Feud with the SEC
Ripple itself has been facing a legal feud with the SEC since December 2020. The SEC accused Ripple of illegally selling XRP crypto assets as unregistered securities. The SEC claims that Ripple raised more than $1.3 billion (approximately IDR 20.3 trillion) through XRP sales to investors in the US and around the world.
Ripple denies the allegations, arguing that XRP is not a security, but a digital asset that functions as a cross-border payment tool. Ripple also said that the SEC does not have the authority to regulate XRP, because the coin is not a product supervised by the agency.
The case is still ongoing in US courts, with several decisions in favor of Ripple. In June 2021, US judge Analysis Torres ruled that XRP was not included in the securities category.