Ripple’s CEO, Brad Garlinghouse, recently disclosed at the Fortune Brainstorm Tech Conference that Ripple Labs is close to repurchasing up to $1.4 billion of its stock from investors. During his speech, Garlinghouse addressed several key issues impacting Ripple and the broader cryptocurrency industry, including regulatory challenges, the European MiCA regulation, ongoing legal disputes with the SEC, and the company’s future IPO plans.
Garlinghouse confirmed that Ripple is actively engaged in buying back its stock but clarified that this does not mean the company is preparing for an Initial Public Offering (IPO) at the moment. The primary reason for this delay in going public is Ripple’s protracted legal battle with the U.S. Securities and Exchange Commission (SEC). Despite the ongoing issues, Garlinghouse emphasized that the legal conflict is not related to XRP’s regulatory status, as the cryptocurrency was deemed not a security by Judge Analisa Torres in July 2023.
Ripple CEO Reveals $1.4 Billion Stock Buyback, Delays IPO Due to Ongoing SEC Lawsuit
The Ripple CEO explained that while Ripple Labs is making significant progress in repurchasing its shares, with a planned total buyback value of $1.4 billion, the company’s primary focus is not on going public immediately. Instead, an IPO is seen as a future milestone rather than an immediate objective. This strategic buyback is part of Ripple’s broader plan, which is not solely centered around becoming a public entity at this time.
Garlinghouse also highlighted the surprising political divide in the United States regarding cryptocurrency legislation, noting that, unlike in other regions where there is a more unified focus on cryptocurrency’s benefits, the U.S. debate is highly partisan. He pointed out that internationally, both public and private sectors are more interested in how cryptocurrencies can enhance existing systems and drive innovation.
Lastly, Garlinghouse discussed the substantial legal expenses Ripple has incurred, totaling approximately $150 million, without providing a timeline for the case’s resolution. He also mentioned the current trading struggles of XRP, which remains below $1. Despite these challenges, if Ripple receives a favorable ruling in its ongoing legal issues with the SEC, XRP might see a significant price increase and potentially retest its previous high values.
