Ripple’s CEO, Brad Garlinghouse, expressed his dissatisfaction with how the United States Securities and Exchange Commission (SEC) is using Ripple’s quarterly XRP Markets Report.
Garlinghouse highlighted that Ripple had willingly started creating these reports to share updates about its XRP holdings and to make the cryptocurrency industry more transparent.
Unfortunately, it’s now being used as evidence against Ripple in the ongoing legal dispute as the SEC turned these reports against the company.
Despite this setback, he reaffirmed Ripple’s commitment to transparency and hinted that changes might be considered for future reports.
On July 31st, Ripple, released its XRP markets report for Q2 2023. Unlike the previous quarter, this report focuses on key highlights.
Notably, it discusses the impactful summary judgment ruling by Judge Torres, which aims to clarify misconceptions and offer insights into Ripple’s XRP holdings.
The report reveals a significant rise in Ripple’s XRP holding, increasing from 5,506,585,918 to 5,551,119,094, an approximate gain of 45 million.
Additionally, the total XRP held in on-ledger escrow decreased by almost 1 billion, attributed to the growing market demand for XRP.
In addition, XRP lawyer John Deaton also voiced strong objections on twitter against the SEC’s utilization of these reports as evidence in the ongoing lawsuit against the company and its executives.
Deaton pointed out that Ripple voluntarily releases these quarterly reports, while other companies not only hide token sales but also purposely obscure such transactions.
Ripple acknowledged the significant ruling made by Judge Torres in the Securities and Exchange Commission v. Ripple Labs case on July 13, which determined that XRP is not classified as a security.
However, the company clarified that, while not all XRP sales fall under the security classification, sales conducted through written contracts could be considered investment contracts and thus subject to security regulations.
Moreover, Ripple tackled misconceptions related to its partial victory, emphasizing that while XRP is not labeled security in specific scenarios, it might still carry that classification under certain conditions.
