In a recent tweet, Ripple CEO Brad Garlinghouse expressed his disapproval of the United States Securities and Exchange Commission (SEC) for using the company’s quarterly XRP Markets Report as evidence in the ongoing legal battle between Ripple and the regulatory agency. The report, designed to promote transparency in the cryptocurrency industry, was intended to provide updates on Ripple’s XRP holdings but has seemingly been turned against the company.
Garlinghouse took to Twitter on August 2 to share his concerns. He said, “We began these reports to voluntarily provide updates given our XRP holdings. Sadly, they were used against us in the SEC lawsuit – however, we remain steadfast in our commitment to transparency but I suspect they’re going to look a bit different moving forward.”
Ripple, a prominent crypto payments solutions firm, had unveiled its Q2 2023 XRP Markets Report on July 31. This particular report stands out from previous quarters as it focuses on essential highlights, including Judge Torres’ significant summary judgment ruling, which aimed to clarify misconceptions and shed light on Ripple’s XRP holdings.
According to the report, Ripple’s XRP holdings experienced a notable increase from 5,506,585,918 to 5,551,119,094, indicating a rise of approximately 45 million. Concurrently, the total XRP on ledger escrow decreased by nearly 1 billion, a shift attributed to the surging demand for XRP.
The ongoing legal dispute between Ripple and the SEC has been a matter of intense interest in the cryptocurrency community. The SEC alleges that XRP, the digital asset created by Ripple, qualifies as a security and should have been registered with the agency. This assertion led to a lawsuit against Ripple Labs, its CEO Brad Garlinghouse, and its executive chairman Chris Larsen.
Ripple has consistently denied these allegations, maintaining that XRP is a digital currency and not a security. The outcome of this lawsuit could have far-reaching implications not only for Ripple but also for the broader cryptocurrency industry, as it may set a precedent for the regulatory treatment of other digital assets.
The SEC’s decision to use Ripple’s XRP Markets Report as evidence in the ongoing lawsuit has added fuel to the already contentious legal battle. Some members of the cryptocurrency community have criticized the SEC’s approach, arguing that the regulatory agency is attempting to leverage the transparency efforts made by Ripple against the company.
Despite the challenges posed by the SEC lawsuit, Ripple remains determined to uphold its commitment to transparency. Garlinghouse’s assurance that the reports will continue to be issued with some adjustments reflects the company’s unwavering dedication to fostering openness and clarity within the crypto industry.