Ripple Labs, the company behind the XRP cryptocurrency, has discussed the recent ruling by the US Securities and Exchange Commission (SEC) in its Q2 report. Ripple CEO Brad Garlinghouse acknowledged that the company’s quarterly financial reports may undergo changes following the SEC’s use of the disclosures against Ripple in the lawsuit. Despite this, Garlinghouse emphasized Ripple’s commitment to transparency.
In the Q2 report, released on July 31, Ripple addressed misconceptions surrounding the court ruling and clarified its position. The court ruled in favor of Ripple, with the judge declaring that XRP is not a security. Ripple emphasized that this victory extends beyond the company and is a positive development for the broader crypto industry.
The report also debunked the misconception that XRP is partially a security token. Based on the judge’s ruling, Ripple asserted that XRP “is not in and of itself” a security. Additionally, the report clarified that the ruling aimed to determine the reach of the SEC, contrary to the belief that it only protected institutional buyers and not retail traders. Ripple argued that the SEC’s claims to protect investors actually had negative consequences, causing panic selling and a significant loss in market capitalization.
Regarding Ripple’s XRP holdings, the report revealed that the company’s holdings at the end of Q2 2023 stood at 5,551,119,094, representing an increase from the previous quarter. Furthermore, the total XRP on ledger escrow decreased during this period.
John Deaton, a lawyer representing XRP holders, praised Ripple’s transparency, stating that it played a crucial role in protecting the company from fraud and manipulation charges. Deaton highlighted that Ripple voluntarily published its quarterly reports, even though it was not obligated to do so as a private company. In contrast, other companies concealed token sales and disguised transactions. Deaton argued that Ripple’s transparency prevented the SEC from including fraud-related charges in the lawsuit.
In summary, Ripple Labs has addressed the SEC ruling in its Q2 report, clarifying misconceptions and reaffirming its commitment to transparency. The report also revealed an increase in Ripple’s XRP holdings and emphasized the importance of transparency in protecting against potential legal challenges.