Brad Garlinghouse says SEC’s stance was ‘hostile’ for not prioritizing IPO

Ripple CEO Brad Garlinghouse voiced fresh criticism of the US Securities and Exchange Commission (SEC) during an interview with CNBC at the World Economic Forum in Davos, Switzerland, on January 16.

According to Garlinghouse’s statement, an initial public offering (IPO) in the country was not seen as an immediate priority with a regulator that is “hostile” to the cryptocurrency industry in the US.

“Trying to go public with a very hostile regulator that needs to approve your S-1 — that doesn’t sound like much fun to me,” Garlinghouse said. “Coinbase obviously had their S-1 approved and now the Securities and Exchange Commission is suing them for doing things that were outlined in their S-1.”

Garlinghouse also cited the hearing scheduled to take place today in the process between cryptocurrency exchange Coinbase and the SEC related to the issue, highlighting that it is an indication of his company’s position in not being subject to further hostilities. It is worth noting that a court hearing between the two parties, Coinbase and SEC, is scheduled to take place on January 17, 2024.

What Is an Initial Public Offering (IPO)?

The Initial Public Offering (IPO), in the context of cryptocurrencies, represents the moment when a company in the sector goes from private to public, offering its coins in a new issue on the market. This event marks a crucial step for the company, allowing it to raise financial resources from investors in the general public. However, this implies adhering to stricter regulations, increasing the organization’s levels of disclosure and transparency.

Prior to the IPO, the company is categorized as private, with its ownership concentrated in a restricted group of investors. These may include the founders, people close to them, or venture investors, who bet on businesses with high growth potential.

Holding an IPO represents a significant milestone for companies in the cryptocurrency space, especially considering initial perceptions about this market, which are often associated with illicit activities.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.