SEC Commissioner Crenshaw Torches Ripple Settlement: ’This Deal Stinks’

In a blistering dissent, SEC’s Caroline Crenshaw publicly shredded the proposed Ripple settlement—just as Wall Street banks get yet another slap-on-the-wrist pass.

The regulator’s fiery objection exposes the agency’s uneven enforcement playbook: crypto firms get the hammer while traditional finance skates by with fines smaller than a junior banker’s bonus.

Crenshaw’s stand highlights the SEC’s existential crisis—caught between protecting investors and protecting its own bureaucratic inertia.

XRP lawsuit update today: Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially reached a settlement in their years-long legal battle. According to attorney James K. Filan, both parties have asked the court to approve the deal, which includes a $125 million penalty paid by Ripple and the return of $75 million from escrow.

Final Steps in the Ripple vs SEC Lawsuit

The court still needs to approve several final steps:

• Judge Torres must decide whether to lift the injunction and allow escrow funds to be distributed—$50 million to the SEC, and the remaining $25 million back to Ripple.
  
• Once approved, both sides will request the appeals court to remand the case for official closure.
  
• Following that, Ripple and the SEC will move to end their pending appeals.
  

If these steps are completed, one of the most high-profile cases in crypto history will officially close.

SEC Commissioner Crenshaw Slams XRP Lawsuit Settlement

However, not everyone in the SEC is on board. Commissioner Caroline Crenshaw publicly dissented, calling the settlement aand a threat to investor protection.

“This isn’t a settlement I can support,” said Crenshaw. “Ripple walks away with a reduced penalty and freedom to sell XRP. That’s not a win. That’s a retreat.”

Crenshaw emphasized that Ripple was found guilty of illegal institutional XRP sales, yet received what she describes as a “free pass.”

Is the SEC Losing Its Grip on Crypto?

Crenshaw’s fiery dissent highlights growing divisions within the SEC. She warned that the deal sets a dangerous precedent, potentially weakening future crypto enforcement. Her statement called forof the settlement and warned it could damage public trust in the regulator.

While Ripple celebrates, the broader crypto market is taking note of the SEC’s softened stance. The lifted injunction on XRP could lead to broader market optimism, but Crenshaw’s comments raise concerns about the future of U.S. crypto regulation.