Following the landmark court ruling in a Securities & Exchange Commission (SEC) case, Ripple has released a detailed report on the Q2 2023 XRP markets. This report aims to clarify any misconceptions surrounding the court ruling and provide key statistics about Ripple’s XRP holdings.
The court’s decision on July 13, 2023, marked a significant milestone in the crypto industry as it declared that XRP is not a security. Ripple emphasized that the SEC’s approach of “regulation by enforcement” has been proven to be a strategy of intimidation and misinformation to gain political power.
Ripple sought to clear up several misconceptions about the court ruling:
1. The ruling was not a split decision. Ripple highlighted that it was a “resounding win” as the court validated their long-standing position that XRP is not a security. This decision sets a precedent for other digital tokens to achieve a similar classification.
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2. Ripple clarified that XRP itself is never a security. They refuted claims suggesting otherwise and explained that an asset, such as XRP or a physical commodity like an orange grove or a gold bar, does not become a security when sold with additional promises.
3. Ripple distinguished between a traditional share of stock, which is always considered a security, and a digital asset like XRP. The classification of a digital asset as an investment contract and, therefore, a security depends on a transaction-by-transaction basis.
4. Ripple addressed concerns that the ruling prioritized sophisticated institutions over retail buyers. They explained that the court was delineating the SEC’s jurisdiction, stating that where there is no investment contract, there is no security, and no role for a securities commission.
5. Contrary to misconceptions, the court ruling does not impede Ripple’s ability to conduct business. The majority of Ripple’s customers and counterparties have been located outside of the United States since the SEC filed the lawsuit in December 2020. Ripple continues to work with non-US partners in clear regulatory environments.
6. Ripple clarified that the court did not completely dismiss their fair notice defense. The ruling only pertained to their “institutional sales,” while the fair notice defense for other types of transactions remains open.
In addition to these clarifications, Ripple shared data about their XRP holdings for Q2 2023, demonstrating transparency. As of June 30, 2023, Ripple held a total of 5,551,119,094 XRP, with an additional 41,900,000,005 XRP subject to the on-ledger escrow.
At the time of writing, the XRP price stood at $0.6938, consolidating above the 23.6% Fibonacci retracement level.
This report from Ripple aims to provide a comprehensive understanding of the court ruling and Ripple’s position in the market. By addressing misconceptions and providing detailed information about their XRP holdings, Ripple seeks to promote transparency and clarity in the crypto industry.
Image source: [Kraken Blog](https://bitcoinist.com/wp-content/uploads/2023/08/XRPUSD_2023-08-02_09-57-10.png), Chart source: [TradingView.com](https://www.tradingview.com/x/6GeUOw4z/)
