Ripple, the digital payment company, has made the decision to remove the details of its XRP transactions from its quarterly reports. This change has been driven by a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against the company. In their latest quarterly report published on July 31, Ripple explained that the SEC’s action has forced them to re-evaluate the role and contents of their reports. While this may raise concerns about transparency, Ripple has stated that it remains committed to transparency in its operations.
Brad Garlinghouse, the CEO of Ripple, took to Twitter to emphasize their commitment to transparency. He mentioned that the quarterly reports were initially introduced to voluntarily provide updates on their XRP holdings. Unfortunately, these reports have been used against them in the SEC lawsuit. However, Garlinghouse assured the community that moving forward, the reports would be different. It is a clear indication that Ripple is making changes to protect its interests amidst the legal battle with the SEC.
Crypto lawyer John Deaton pointed out that Ripple was not obligated to share the information it has been providing since 2017 as a private company. However, he believes that Ripple’s transparency played a crucial role in preventing the SEC from bringing charges related to fraud, manipulation, and misrepresentation against the company. By willingly sharing information, Ripple was able to maintain a level of trust and accountability within the cryptocurrency community.
The most recent XRP report highlights the court ruling in the SEC vs. Ripple case, which determined that XRP is not a security. Ripple emphasizes that this decision provides legal clarity for both its XRP token and Bitcoin (BTC) in the United States. This legal clarity sets XRP apart from other cryptocurrencies, as it is now one of only two digital assets in the U.S. with this distinction. Ripple’s acknowledgement of the court ruling strengthens their position and challenges SEC Chair Gary Gensler’s assertion that all cryptocurrencies, except for BTC, are securities.
In addition to the changes implemented in their quarterly reports, Ripple also revealed an increase in their total XRP holdings. Within the quarter, their XRP holdings grew by approximately 45 million, from 5.5 billion to 5.55 billion. However, during the same period, the total amount of XRP held in the Ledger Escrow decreased by over 900 million, from 42.8 billion to 41.9 billion. These fluctuating numbers reflect the dynamic nature of Ripple’s cryptocurrency holdings and their ongoing efforts to manage their assets effectively.
Ripple’s decision to remove XRP transaction details from its quarterly reports is a direct response to the SEC lawsuit. While this change may raise concerns about transparency, Ripple remains committed to being transparent in its operations. The court ruling in the SEC vs. Ripple case has provided legal clarity for XRP and strengthened Ripple’s position. As the legal battle continues, Ripple seeks to protect its interests and ensure its compliance with regulatory requirements.
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