- Ripple’s Garlinghouse revealed that the entity is ending its tradition of quarterly XRP Markets Report releases.
- Garlinghouse says that the SEC “weaponized” its transparency in the ongoing legal case that has dragged on since 2020.
- Overall, Ripple’s decision to end the quarterly reports shows that it is changing how it communicates with the public, as well as regulators.
Ripple, the enterprise blockchain company behind the XRP token, has just announced a major change in how it communicates with its community and with regulators. The company’s CEO, Brad Garlinghouse, recently confirmed in a recent update that the company will no longer publish its detailed XRP Markets Reports on a quarterly basis.
This change marks a major switch from its transparency initiative that started in 2017, and may have led to its legal issues with the SEC in the first place. Here’s what this all means and how the SEC is involved.
Why Ripple Is Ending Quarterly XRP Reports
Ripple has published quarterly XRP Markets Reports since 2017. The company did this to provide investors with information about its XRP holdings and other updates. The goal of this move was transparency and showing that Ripple was open to building trust among investors and regulators. However, according to Garlinghouse, this openness backfired.
This transparency initiative played a direct role in the US Securities and Exchange Commission suing the company in 2020. Garlinghouse says that the SEC used information from one of these reports in its case against the company, and it might have led to the case dragging on for as long as it did.
The SEC argued that XRP was a security and that Ripple’s disclosures showed that it had central control. This was one of the factors that weakened Ripple’s claim that XRP is decentralized. Garlinghouse said that the SEC “weaponized” this transparency, and as such, the company is choosing to discontinue the reports in their traditional form. Instead of issuing regular reports, Ripple will now share its information through real-time updates on its website, as well as social media and other means.
What Transparency Will Look Like In The Future
Even though the format of these reports will be changing, Ripple maintains that it is still very open to transparency. The company will continue to publish its XRP holdings, both liquid balances and tokens locked in escrow, on its website.
Regular updates will also be sent out through its official channels like X and the Ripple blog, all of which will make it easier for users to digest information in smaller, more frequent updates. This is opposed to having massive volumes of information compiled and thrown out at investors quarterly.
Ripple’s decision to shift its reporting strategy comes on the heels of a spectacular Q1. The company acquired Hidden Road for a staggering $1.25 billion during the last quarter, in a move that is expected to open new institutional use cases for the XRP Ledger (XRPL) and Ripple’s USD-backed stablecoin, RLUSD. The SEC lawsuit is also nearing closure, with the SEC settling on $50 million, all the way down from a previously reduced $125 million.
In Q1, XRP ETPs drew $37.7 million in inflows, surpassing Bitcoin and Ethereum funds. YTD inflows now total $21Mn. Several big players in the finance space are also jumping in on XRP with Franklin Templeton, Volatility Shares, and Teucrium eyeing the market.
In Brazil, a dedicated XRP ETF has already received regulatory approval, and the CME has launched XRP futures in the U.S. Overall, Ripple’s decision to end the quarterly reports shows that it is changing how it communicates with the public, as well as regulators. It also shows that the company is adapting to a new legal environment.
