- Ripple CEO Brad Garlinghouse has dismissed the possibility of a US IPO due to regulatory challenges.
- Additionally, the Ripple CEO announced that Ripple’s dollar-pegged stablecoin RLUSD is expected to be publicly available within weeks not months.
Ripple CEO Brad Garlinghouse recently shed some light on the company’s stance toward a potential Initial Public Offering(IPO) in the United States. Talking at the Korea Blockchain Week, Brad dismissed the notion of a US-based IPO owing to a challenging regulatory landscape.
Garlinghouse’s comments about a Ripple IPO in the pipeline were notably candid and straightforward. When asked about the possibility of going public in the U.S., he made it very clear that Ripple has no interest in pursuing that route, primarily due to the U.S. Securities and Exchange Commission’s harsh stance on cryptocurrencies.
Infact he advised against incorporating companies heading that road citing the potential for increased legal challenges. Having been a $125 million victim of legal war, this sentiment aligns with the broader cryptocurrency community regarding the SEC’s inconsistent and more times than not adversarial approach to digital assets.
Being casualties of the legal system, the 4-year legal battle between Ripple and the SEC remains fresh in people’s minds. Backtracking, the U.S. SEC accused Ripple of conducting unregistered securities offerings through its XRP token. This was later followed by a series of court rulings with Judge Torres offering Ripple a partial victory and a $125 million fine contrary to the $2 billion the SEC was hoping for. In light of this, the company remains cautious about the US regulatory landscape.
Following the dismissal of going public in the U.S., the crypto community was highly expecting the Ripple top dog to comment on the highly awaited Ripple’s dollar-pegged stablecoin RLUSD. According to Garlinghouse, the stablecoin is currently in a private, closed beta, RLUSD, and is expected to be publicly available within weeks. This stablecoin, designed to complement Ripple’s XRP token, is expected to rival the top contenders in the stablecoin market, a space currently dominated by USDT and USDC.
The stablecoin’s development has been rigorous, with Ripple President Monica Long revealing that RLUSD had undergone testing on two blockchain networks, marking significant progress. As earlier reported, Ripple’s decision to support its stablecoin, RLUSD, on the Ethereum blockchain, rather than exclusively on its native XRP Ledger (XRPL), has raised numerous eyebrows and questions about the firm’s strategic direction. As Ripple prepares to launch RLUSD, it aims to leverage its strong relationships with financial institutions, getting the best out of these alliances in the economic market.
Additionally, Garlinghouse expressed optimism about a potential shift in the SEC’s leadership after the forthcoming US presidential election. He criticized the current SEC Chairman, Gary Gensler, for his regulatory stance, which he contends has harmed the cryptocurrency industry.
At the time of writing, XRP is currently swapping hands with $0.5503, marking a 3.70% decline in the last 24 hours.
