Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Ripple CEO Brad Garlinghouse indicated that the nature of the company’s quarterly financial disclosures might shift from the norm after the US Securities and Exchange Commission (SEC) utilized the firm’s reports against it in the ongoing lawsuit.
In the meantime, XRP holders’ attorney John Deaton asserts that Ripple’s openness has shielded the company from allegations of fraud and manipulation.
Ripple Expands XRP Holdings in Q2 2023
Garlinghouse mentioned that the company voluntarily began publishing quarterly reports on its XRP holdings as a demonstration of transparency, but noted that these reports were leveraged against it in the lawsuit, suggesting potential modifications to their format in the future.
Ripple issued its quarterly XRP markets report for Q2 2023 on July 31, which was distinct and centered on the significant court ruling and misconceptions, while also detailing the company’s XRP holdings.
ADVERTISEMENT
As previously noted by CryptoPotato, the court ruled in favor of Ripple, with Judge Analise Torres stating that XRP is not classified as a security, in a case involving the SEC and Ripple Labs that extended over nearly three years.
The report also aimed to clarify several misconceptions following the court’s ruling. Ripple emphasized that the decision represented not just a win for the firm but for the entire crypto sector. The company also refuted a misconception that XRP is partially a security token, asserting that according to the judge’s ruling, the asset “is not in and of itself” a security.
Related Posts
Additionally, the firm addressed the misconception that the ruling favored institutional buyers over retail traders. Ripple stated that the decision concentrated on the jurisdiction of the SEC, while noting that the regulator’s claims to protect investors had the opposite effect.
As indicated in the report, the SEC lawsuit initiated in 2020 triggered panic selling among investors, resulting in a $15 billion loss in market capitalization for US holders.
At the close of Q2 2023, which ended on June 30, Ripple’s XRP holdings totaled 5,551,119,094, an increase from the 5,506,585,918 recorded on March 31. Additionally, the total XRP in ledger escrow decreased from 42,800,000,013 at the end of Q1 2023 to 41,900,000,005 in Q2 2023.
Deaton on Ripple’s Transparency
While Ripple may alter the format of its reports in the future, XRP holders’ attorney John Deaton believes that the company’s transparency has protected it from facing fraud and manipulation accusations.
Deaton remarked that Ripple released its quarterly reports even when it was not required to as a private entity, whereas other companies concealed token sales and intentionally obscured transactions.
The lawyer noted that the SEC would have included fraud, misrepresentation, or manipulation charges in its lawsuit if the agency perceived any possibility, adding, “When you’re transparent, they can’t claim fraud – even when they want to.”
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
