Blockchain company Ripple has achieved a significant, albeit partial, victory in its lengthy legal battle against the United States Securities and Exchange Commission (SEC).
However, the company’s challenges are not yet resolved, as the federal judge overseeing the case against Terraform Labs has rejected the previously set precedent.
Ripple CEO Criticizes SEC’s Use of XRP Reports in Lawsuit
District Judge Jed Rakoff of the Southern District of New York (SDNY) has raised doubts about Judge Analisa Torres’ ruling that deemed some XRP sales as non-security offers. Ripple’s CEO, Brad Garlinghouse, has now attacked the SEC’s utilization of XRP reports in the ongoing lawsuit.
Following the release of the XRP Markets Report for the second quarter of 2023, which included details about Ripple’s XRP holdings, Garlinghouse stated that his team had voluntarily published these reports. However, he expressed frustration as the SEC used the same reports against Ripple in the legal proceedings. Garlinghouse voiced his concerns on August 2.
We began these reports to voluntarily provide updates given our XRP holdings. Sadly, they were used against us in the SEC lawsuit – however, we remain steadfast in our commitment to transparency but I suspect they’re going to look a bit different moving forward https://t.co/oANR6WCG09
— Brad Garlinghouse (@bgarlinghouse) August 2, 2023
Ripple’s Transparency Questioned in SEC Lawsuit
Legal expert and amicus curiae on the case, John E. Deaton, supported Garlinghouse’s claim, stating that the SEC utilized the transparency of the reports against Ripple and its two executives, Brad Garlinghouse and Chris Larsen.
According to legal expert John E. Deaton, Ripple’s decision to share information through reports, despite not being obligated as a private company, has played a crucial role in their defense against the SEC.
Deaton pointed out that the transparency prevented the SEC from accusing Ripple of fraudulent activities, misrepresentation, or manipulation, which they might have done if Ripple had been less open.
Meanwhile, the XRP token, at the center of the case, was trading at $0.66, marking a 4.35% drop for the day and a 7.38% decline for the week.
However, it had still gained 36.82% in the previous month. Some indicators suggest that a favorable outcome for Ripple in the lawsuit could potentially drive the XRP token’s price towards $10.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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