Ripple CEO Criticizes SEC’s Use of XRP Report as Evidence in Lawsuit
Ripple’s CEO, Brad Garlinghouse, expressed his disapproval of the United States Securities and Exchange Commission (SEC) for utilizing Ripple’s quarterly XRP Markets Report as evidence against the company in the ongoing lawsuit. The report, which was designed to enhance transparency in the cryptocurrency industry, was originally intended to offer voluntary updates on Ripple’s XRP holdings. However, it was later used against the company in the SEC’s lawsuit.
The SEC’s case against Ripple was filed in December 2020, alleging that the company offered an unregistered security. Ripple has consistently maintained that XRP is not a security, and on July 13, the court ruled that XRP itself is not a security. Despite this victory, certain sales of XRP executed under written contracts were categorized as investment contracts and considered securities.
In response to the ruling, Ripple clarified misconceptions surrounding its victory. The court’s decision is seen as a significant win for Ripple and the broader crypto industry. However, Garlinghouse criticized the SEC’s approach of regulation by enforcement, suggesting that it has repeatedly hurt the retail consumer. He emphasized Ripple’s commitment to transparency but hinted that future reports might undergo changes.
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 https://t.co/oANR6WCG09
— Brad Garlinghouse (@bgarlinghouse) August 2, 2023
The Q2 2023 XRP Markets Report highlighted a surge in Ripple’s XRP holdings and a decrease in XRP on-ledger escrow, attributed to rising demand for XRP. The report aims to debunk misconceptions about the court ruling and provide updates on Ripple’s XRP holdings.
While the court ruling brings clarity on XRP’s regulatory status, Ripple and its CEO continue to challenge the SEC’s use of the reports as evidence and express concerns about the agency’s regulatory approach. The future of the lawsuit and its impact on Ripple’s business will be closely monitored by the cryptocurrency community and industry stakeholders.