Ripple Labs Talks About SEC Ruling in Q2 Report

Ripple CEO Brad Garlinghouse has revealed that the company’s quarterly financial reports may change in the future, following the US Securities and Exchange Commission’s (SEC) use of the company’s disclosures against it in their ongoing lawsuit. Garlinghouse explained that Ripple had voluntarily released these reports as a means of transparency, but they were later weaponized against the firm in the legal battle. However, Garlinghouse emphasized that Ripple remains committed to transparency, hinting at potential modifications to the reports moving forward.

In a related development, attorney John Deaton, representing XRP holders, praised Ripple’s transparency, arguing that it helped the company avoid fraud and manipulation allegations. Deaton noted that Ripple had chosen to voluntarily share information about their token sales, despite being a private company, whereas other firms had concealed such transactions. He suggested that the SEC would have included additional charges in its lawsuit if it had found grounds for fraud, misrepresentation, or manipulation, but Ripple’s transparency prevented such accusations.

In its Q2 2023 XRP markets report, Ripple addressed misconceptions following the court ruling in their favor. The report clarified that XRP is not classified as a security, as per the judge’s ruling, and refuted claims of partial security status. Additionally, Ripple clarified that the court’s decision aimed to determine the SEC’s regulatory reach, countering the misconception that it solely protected institutional buyers rather than retail traders. The report also highlighted the panic selling triggered by the SEC lawsuit in 2020, resulting in a $15 billion loss in market capitalization for US holders.

Regarding its XRP holdings, Ripple disclosed an increase from 5,506,585,918 at the end of Q1 2023 to 5,551,119,094 at the end of Q2 2023. Furthermore, the total XRP held in ledger escrow decreased from 42,800,000,013 in Q1 2023 to 41,900,000,005 in Q2 2023.

Overall, Ripple’s transparency in releasing financial reports has played a significant role in the ongoing legal battle with the SEC, helping the company avoid certain allegations and maintain its commitment to openness.

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