- Ripple CEO Brad Garlinghouse criticizes SEC for misusing XRP Markets Report in lawsuit.
- Ripple’s Q2 2023 XRP Markets Report focuses on transparency amid legal battle with SEC.
- XRP holdings increase by almost 45 million while total XRP on ledger escrow decreases due to demand.
Ripple CEO, Brad Garlinghouse, expressed his criticism towards the US Securities and Exchange Commission (SEC) on Wednesday, accusing the regulatory body of misusing Ripple’s quarterly XRP Markets Report in their ongoing lawsuit against the crypto payments firm. The report, which aims to bring transparency to the crypto industry, had been used as evidence against Ripple, an action that Garlinghouse found disappointing.
In response to the criticism, Ripple released its Q2 2023 XRP Markets Report on August 2, taking a different approach this quarter by focusing on Judge Torres’ landmark summary judgment ruling, clarifying misconceptions, and detailing their XRP holdings.
“We started these reports voluntarily to keep everyone updated about our XRP holdings. Unfortunately, they were used against us in the SEC lawsuit. Nonetheless, we are committed to transparency, though we might have to make some changes in the future,” said Brad Garlinghouse, the CEO of Ripple.
According to the report, Ripple’s XRP holdings saw a significant increase from 5,506,585,918 to 5,551,119,094, representing a rise of almost 45 million. Concurrently, the total XRP on ledger escrow witnessed a decrease of nearly 1 billion due to increased demand for XRP.
Ripple’s stand on transparency has also received support from their legal counsel. John Deaton, the XRP lawyer, criticized the SEC for using the reports against the company and its executives during the lawsuit. He highlighted that while Ripple voluntarily publishes these quarterly reports, other firms often hide their share token sales and intentionally disguise such transactions.
“Despite the SEC’s attempts to use this information against Ripple, the transparency has actually prevented the regulatory body from asserting false charges of fraud, misrepresentation, or manipulation, which they might have attempted if the information was not available. Transparency makes it difficult for them to claim fraud even when they want to,” said John Deaton.
It is absolutely true that the SEC used the transparency of these reports against Ripple and its two executives. As a private company, Ripple was under no obligation to share this info. Other companies not only didn’t share token sales, but intentionally disguised those… https://t.co/mbAO6feEfW
— John E Deaton (@JohnEDeaton1) August 2, 2023
The ongoing lawsuit between Ripple and the SEC has been a significant point of concern for the crypto industry, and the company’s commitment to transparency has become a crucial aspect of the legal battle.
Moving forward, Ripple remains determined to uphold transparency in its operations while seeking resolution with the SEC. The company’s efforts to dispel misconceptions and provide insight into their XRP holdings are likely to continue, albeit with possible adjustments to prevent further misuse of their reports in the legal proceedings.