XRP Report Usage by SEC Criticized by Ripple CEO

Ripple’s Quarterly XRP Markets Report

Ripple CEO Brad Garlinhouse expressed his disapproval of the United States Securities and Exchange Commission (SEC) on August 2, for using the company’s quarterly XRP Markets Report, designed to boost transparency in the cryptocurrency industry, as evidence against Ripple in the ongoing lawsuit.

Garlinghouse noted that Ripple created the reports with the purpose of providing updates about their XRP holdings on a voluntary basis. He added that these reports were later “used against” the company in the SEC lawsuit. Despite this, Garlinghouse emphasized Ripple’s commitment to transparency and hinted that future reports may undergo some changes.

On July 31, Ripple, the crypto payments solutions firm, released its Q2 2023 XRP Markets Report. This report is remarkable for its focus on key highlights such as Judge Torres’ summary judgment ruling, clearing up misconceptions and providing insight into Ripple’s XRP holdings.

The report shows that Ripple’s XRP holdings rose from 5,506,585,918 to 5,551,119,094, representing an increase of approximately 45 million. At the same time, the total XRP on ledger escrow decreased by almost 1 billion, likely due to the mounting demand for XRP.

Ripple’s Response to the SEC Lawsuit

In response to the SEC’s lawsuit against Ripple, CEO Brad Garlinghouse and XRP lawyer John Deaton both expressed strong disapproval of the SEC’s use of reports as evidence against the company and its executives. Deaton pointed out that Ripple voluntarily publishes quarterly reports, while other firms often hide token sales or disguise them.

Following Judge Torres’ ruling that XRP is not considered a security in the case of Securities & Exchange Commission v. Ripple Labs on July 13, Ripple acknowledged the decision but clarified that while XRP sales are not always classified as securities, sales executed under written contracts can be categorized as investment contracts and thus fall under the security classification.

Ripple also addressed misconceptions surrounding its partial victory, stressing that while XRP is not a security in certain contexts, it may still be considered as such in specific circumstances. Furthermore, the company clarified that the ruling only provides protection to sophisticated institutions and not to retail buyers of ctsi crypto, dogelon crypto, dcg crypto, ctx crypto, dia crypto, crypto.today, ddx crypto, crypto.net, crypto.com, and dappradar crypto.