News - CEO of Ripple criticizes SEC for use of XRP report

By Mike Hesp

CEO of Ripple criticizes SEC for use of XRP report

On Aug. 2, Ripple CEO Brad Garlinghouse expressed his disapproval of the United States Securities and Exchange Commission (SEC) for using Ripple's quarterly XRP Markets Report as evidence against the company in its ongoing lawsuit.

The report was originally intended to promote transparency in the cryptocurrency industry and provide voluntary updates on Ripple's XRP holdings. Garlinghouse emphasized that transparency is a core value of the company, but indicated that future reports may undergo changes.

On July 31 revealed Ripple the Q2 2023 XRP Markets Report. The report showed that Ripple's XRP holdings had increased, while total XRP on ledger escrow had decreased due to increasing demand for XRP.

In addition to Garlinghouse's criticism, XRP lawyer John Deaton spoke also expressed his disapproval about using the reports as evidence in the lawsuit against the company. He pointed out that Ripple publishes these reports voluntarily and criticized other companies that hide their token sales and intentionally disguise transactions.

Ripple acknowledged the important statement by Judge Torres on July 13, in which XRP was not considered a security. However, the company clarified that certain sales under written contracts can be considered investment contracts and fall under the securities classification.

To avoid misconceptions, Ripple emphasized that while XRP is not a security in some contexts, it can be considered such in specific circumstances. The ruling offers protection to sophisticated institutions, but not to private buyers.

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