Ripple CEO Brad Garlinghouse has expressed strong 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, designed to enhance transparency in the cryptocurrency industry, was originally initiated by the company to voluntarily offer updates on its XRP holdings. However, it was later used against Ripple in the SEC’s legal proceedings.

Despite the setback, Garlinghouse reiterated Ripple’s unwavering commitment to transparency. The company believes in providing accurate information to the public and the cryptocurrency community. Nonetheless, the CEO hinted that future reports might undergo some changes to prevent similar misuse in the future.

Highlights from Ripple’s Q2 2023 XRP Markets Report

On July 31, Ripple unveiled its Q2 2023 XRP Markets Report, which contained several key highlights. The report focused on Judge Torres’ significant summary judgment ruling, which clarified misconceptions and shed light on Ripple’s XRP holdings.


According to the report, Ripple’s XRP holdings experienced a notable surge, increasing from 5,506,585,918 to 5,551,119,094. This represents a significant rise of approximately 45 million. Concurrently, the total XRP on ledger escrow decreased by nearly 1 billion. This decrease can be attributed to the rising demand for XRP.

XRP Lawyer John Deaton’s Strong Disapproval

Aside from the Ripple CEO’s criticism, XRP lawyer John Deaton also expressed his strong disapproval of the SEC’s use of these reports as evidence against the company and its executives. Deaton pointed out that Ripple willingly publishes these reports on a quarterly basis, demonstrating their commitment to transparency.

In contrast, other firms not only conceal token sales but also deliberately disguise such transactions.

Ripple acknowledged the significant ruling made by Judge Torres in the case of Securities and Exchange Commission v. Ripple Labs on July 13. The ruling declared that XRP is not considered a security. However, Ripple clarified that while all XRP sales are not classified as securities, sales executed under written contracts may be categorized as investment contracts and thus fall under the security classification.

Clarification on XRP’s Security Classification

In its report, Ripple also addressed misconceptions surrounding its partial victory regarding XRP’s security classification. The company stressed that while XRP is not considered a security in certain contexts, it may still be deemed as such in specific circumstances. Furthermore, Ripple clarified that the ruling provides protection to sophisticated institutions but does not extend the same protection to retail buyers.

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