Brad Garlinghouse Criticizes the SEC’s Use of XRP Report in Legal Proceedings

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Brad Garlinghouse, the CEO of Ripple, expressed serious concerns regarding the U.S. Securities and Exchange Commission’s (SEC) utilization of Ripple’s XRP Markets Report in legal proceedings. A document initially designed to foster transparency in the world of cryptocurrency has become the basis of evidence against the company itself.

Ripple’s Stance on Transparency

Garlinghouse openly declared that the company began these reports with an earnest desire to provide voluntary updates on its XRP holdings. Unfortunately, this transparency has been “used against” Ripple in the ongoing legal tussle with the SEC. While the CEO asserted that the commitment to transparency would remain steadfast, he hinted at possible alterations to the structure of future reports.

On July 13th, the court delivered a ruling that unequivocally stated that XRP is not a security. This put XRP on a pedestal alongside Bitcoin as one of the few digital assets in the U.S. to gain such clarity. 

The ruling also shed light on the SEC’s methods, portraying it as a strategy of intimidation and misinformation, aimed at consolidating its own political prowess. 

Statements from the SEC’s head claiming that all crypto tokens except Bitcoin are securities have now been refuted. With both the court and the market acknowledging XRP’s status, it seems that the SEC’s approach to regulating cryptocurrencies has been questioned.

Dissecting the Misconceptions

The XRP report highlighted that the court’s *decision led to several misconceptions. One of the widespread beliefs was that it was a split decision. The court, however, resonated with Ripple’s long-standing claim that XRP is not a security, providing a clear victory for the company. 

The decision also refuted misconceptions around protection for sophisticated institutions over retail buyers, Ripple’s ability to do business, and the Court’s stance on Ripple’s fair notice defense.

Ripple shared detailed information about its XRP holdings as of March 31, 2023, and June 30, 2023. They highlighted the categorization of their XRP into two sections: the accessible portion in their wallets and the part subjected to on-ledger escrow lockups, to be released over the coming 42 months.