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XRP holders' lawyer John Deaton has shared a very salient comment on the latest quarterly report that was published earlier by American blockchain payments firm Ripple Labs Inc. Taking to Twitter, Deaton noted that this transparency move might have saved Ripple from additional charges from the United States Securities and Exchange Commission (SEC).
The pro-crypto lawyer buttressed his points noting that as a privately held company, Ripple Labs is not under any obligation to disclose its financial standing or any aspect of its internal operations. The legal behemoth said that the company's voluntary disclosure takes a major detour from other related companies, which might even disguise some of their transactions to avoid scrutiny.
It is absolutely true that the SEC used the transparency of these reports against Ripple and its two executives. As a private company, Ripple was under no obligation to share this info. Other companies not only didn’t share token sales, but intentionally disguised those… https://t.co/mbAO6feEfW
— John E Deaton (@JohnEDeaton1) August 2, 2023Advertisement
In his characteristic manner, Deaton said that while the information it periodically declares has, in a way, been used against the company by the market regulator and other players in the industry, it has largely prevented an accusation of fraud that might notably offset the company's integrity.
To Deaton, the SEC could have brought on bogus fraud, misrepresentation and manipulation charges if it could. The firm's transparency is a major voluntary move that is now the company's savior at this time.
Highlight of Ripple report
The report that Deaton referenced is the second-quarter performance highlight in which the company revealed its total XRP holdings as well as the coin it manages in escrow.
As reported earlier, Ripple said its XRP subjected to on-ledger escrow is pegged at 41,900,000,005, while the total XRP it holds as a company at the end of the second quarter ended in June was pegged at 5,551,119,094. This figure compares to the escrow-bound XRP as of the end of the first quarter in March, which comes in at 42,800,000,013.
The report debunked key misconceptions bordering on the XRP ruling and is currently being well-applauded by the broader community.
Vladislav Sopov