Ripple CEO Slams SEC’s Incorporation of XRP Report in Legal Battle

On August 2, Ripple’s CEO, Brad Garlinghouse, expressed his strong dissatisfaction with the United States Securities and Exchange Commission (SEC) for using Ripple’s quarterly XRP Markets Report as evidence in the ongoing lawsuit against the company.

Ripple CEO Slams SEC’s Incorporation of XRP Report in Legal Battle

Garlinghouse clarified that Ripple had voluntarily initiated these reports to provide updates on its Ripple holdings, intending to enhance transparency in the cryptocurrency industry. However, he lamented that these very reports were later turned against the company in the SEC’s legal proceedings. Despite this setback, Garlinghouse emphasized Ripple’s continued commitment to transparency but hinted at possible changes to future reports.

On July 31, Ripple unveiled its Q2 2023 Markets Report, focusing on key highlights, including Judge Torres’ significant summary judgment ruling, which clarified misconceptions and shed light on Ripple’s holdings. The report revealed an increase in Ripple’s holdings from 5,506,585,918 to 5,551,119,094, with approximately 45 million additional XRP.

Additionally, the report indicated a decrease of nearly 1 billion in total XRP on ledger escrow, attributed to the growing demand for XRP.

Apart from Ripple’s CEO, lawyer John Deaton also voiced strong disapproval of the SEC‘s utilization of these reports as evidence in the ongoing lawsuit against the company and its executives. Deaton highlighted that Ripple willingly publishes these reports quarterly, while other firms conceal token sales and deliberately mask such transactions.

Ripple acknowledged the significance of Judge Torres’ ruling on July 13, which declared that is not considered a security. However, the company clarified that while all sales are not classified as securities, sales conducted under written contracts can be categorized as investment contracts and may fall under the security classification.