Brad Garlinghouse’s Stance on Ripple’s IPO: What Has Changed?

Ripple Labs’ CEO, Brad Garlinghouse, was recently featured on the “Thinking Crypto” podcast, where he addressed several pressing topics, including the potential for Ripple to go public through an IPO. During the podcast, Garlinghouse clarified Ripple’s stance, stating that the company has no immediate plans to pursue an IPO, as it is not a “high priority” for the firm.

From the CEO’s comments, it is widely believed that Ripple’s reluctance to go public is largely due to its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The lawsuit, which centers on whether Ripple’s sale of XRP constitutes an unregistered securities offering, would likely hinder any move to launch an IPO in the near future.

Garlinghouse also hinted at another reason for not pursuing an IPO. According to him, many companies go public to raise capital, but that’s not the case with Ripple, which is in a strong financial position. He highlighted the company’s recent investments in cryptocurrency and XRP-related projects as evidence of Ripple’s financial health. Garlinghouse emphasized that Ripple is more focused on maintaining shareholder satisfaction and providing liquidity to its investors rather than seeking additional funding.

These recent remarks contrast with Garlinghouse’s previous statements, where he suggested that Ripple could consider going public after resolving its legal dispute with the SEC. However, the recent decision by the SEC to re-appeal its case against Ripple may extend the legal battle for another two years, further delaying any potential IPO plans.

One of the central issues in the SEC’s case is whether the sale of XRP tokens qualifies as a securities offering. While a court recently ruled that XRP is not a security when sold to the general public, the SEC’s re-appeal targets Garlinghouse and Ripple co-founder Chris Larsen, accusing them of facilitating and covering up XRP sales in both cash and non-cash forms. The re-appeal also includes charges related to the distribution of XRP to Ripple employees.