Ripple-SEC Settlement Inches Forward—But One Commissioner Is Blowing the Whistle
Ripple’s marathon legal battle with the SEC nears resolution—on paper at least. The blockchain firm’s $1.3B settlement is clearing procedural hurdles, but Commissioner Caroline Crenshaw just dropped a dissent bomb calling it ’a slap on the wrist for blatant securities fraud.’
Behind the scenes: This deal reeks of regulatory fatigue. After 5 years of courtroom trench warfare, even the SEC seems ready to move on—despite leaving XRP’s legal status in murky waters. Crenshaw’s protest? Likely too little, too late.
The kicker: Wall Street’s watchdogs keep playing whack-a-mole with crypto while traditional finance gets away with trillion-dollar ’oopsies.’ Some things never change.
Crenshaw Criticizes Ripple Settlement
However, despite the Commission’s intentions, not all parties involved agree with the decision. In an official statement, SEC Commissioner Caroline Crenshaw—who has been a vocal skeptic of the cryptocurrency sector—voiced her opposition to the settlement agreement.
“Today, the Commission announced a settlement, which calls for the return to Ripple of over $75 million currently being held in escrow, and to vacate the court-issued injunction requiring Ripple to obey the law,” Crenshaw wrote. “This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws. This is not a settlement I can support,” she added.
Commissioner Crenshaw outlined three key reasons for her opposition, beginning with concerns that the settlement undercuts the authority of the court’s previous ruling. She pointed to language in the agreement stating that neither the SEC nor Ripple would MOVE to amend or overturn the district court’s summary judgment.
Despite this, Crenshaw warned that if Ripple were to resume selling unregistered XRP to institutional investors—a move she says would clearly violate the court’s findings—the SEC has effectively agreed to take no action, weakening enforcement.
“There will be no enforcement of the law. The hundreds of hours spent by the court in this matter will be rendered meaningless,” Crenshaw wrote.
Crenshaw further argued that the settlement compromises the integrity of the SEC’s enforcement program. She said it sets a troubling precedent by disregarding the straightforward application of legal standards to the facts of the case, potentially weakening the Commission’s authority in future actions.
Crenshaw also contended that the settlement does not serve the best interests of investors or the broader market. She argued that rather than providing clarity, the agreement introduces further uncertainty, leaving key regulatory questions unresolved at a time when the industry needs clear guidance.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the shiba inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
