Ripple CEO Brad Garlinghouse, a California-based major blockchain company, continues to mull an initial public offering (IPO). They stated that the US regulatory framework is out of step with several markets such as the UK, Singapore, and Japan.
This absence of regulatory transparency and assurance for investors is a principal factor hindering the company’s growth in the US and recruiting new customers, he said in an interview with CNN.
Garlinghouse stated that,
“We have been big advocates of a bill that was introduced in the Congress called the DCEA, or the Digital Commodity Exchange Act … [which could be] a very important step in providing that clarity and certainty here in the US.”
Referring to his earlier statements, the CEO suggested that his firm was contemplating moving from the US and transfer to some of the potential destinations to which the company could present their services, including Asian and European nations.
As stated by Garlinghouse, the absence of a transparent regulatory framework in the US affected the company’s communications with diverse customers who were deliberating whether to join its network because of country-specific logic.
“Often times when I’m speaking with customers and we’re talking to them about our product that uses XRP in the payments flows, they will ask me about the regulatory dynamics, and they will [say] … look, until there’s clarity in the regulatory frameworks, we’re going to hold off,” the CEO stated.
“Now, that has not been the case because of the clarity and certainty in countries like… the UK, or the UAE, or Switzerland.”
Given that 95% of Ripple’s customers are based outside the US, the company said, “One of the dynamics [causing this] is we have US companies who are waiting for clarity,” in particular from the US Securities and Exchange Commission.
Remarking on its implied IPO, Ripple’s CEO said the firm has “not been public about what our plans are with the exception that I’ve said there would be public crypto companies. I originally predicted we’d see them in the year 2020,” though “the pandemic affected a lot of things, slowed down things a bit.”
At pixel time (10:36 UTC), XRP trades at USD 0.627 and is up by 1% in a day and 19% in a week. The price rallied by 169% in a month and 192% in a year.
You may watch the complete interview below:
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