U.S. SEC Commissioner Caroline Crenshaw has voiced strong opposition to the proposed Ripple (XRP-USD) settlement. She argues that this deal would significantly weaken the SEC’s ability to regulate the crypto sector. In a statement on May 8, Crenshaw highlighted the long-term damage this could do to the credibility of the agency’s legal actions. “This settlement does a tremendous disservice to the investing public,” Crenshaw stated. She also warned that it could further erode the court’s authority in interpreting securities laws.
Ripple’s Legal Fight with the SEC Isn’t Over
The battle between Ripple and the SEC began in December 2020, when the SEC accused Ripple of selling XRP as an unregistered security. After years of litigation, the SEC and Ripple are now pushing for a settlement. The proposal involves dissolving an injunction set for August 2024 and returning part of the $125 million in penalties to Ripple. However, Crenshaw believes the settlement sets a dangerous precedent. “It creates more questions than answers,” she said, adding that it will leave the industry without clear regulatory direction.
Ripple and SEC Battle Through Legal Hurdles Ahead
The settlement is not final yet. According to former federal prosecutor James Filan, Judge Torres must first issue an indicative ruling on the settlement. If the judge approves, the SEC and Ripple will file additional motions for the settlement to be fully accepted. Afterward, both sides hope to dismiss the SEC’s appeal and end the case.
Crenshaw’s comments shed light on the SEC’s evolving approach to cryptocurrency regulation. Even though Ripple is pushing for a resolution, Crenshaw’s concerns highlight the rising uncertainty over the SEC’s future approach to crypto regulation. The case highlights the critical need for clear, comprehensive regulation in the space. “The settlement does not serve the best interests of the investors,” she concluded.
XRP Holds Strong Despite Regulatory Hurdles
Ripple’s XRP continues to perform well. It is defying the ongoing regulatory challenges. In the past five days, XRP has surged by 5.81%. This push has lifted its price to $2.36. This increase comes amid a broader crypto market rally, driven by easing global trade tensions and rising investor confidence in digital assets.
Despite the SEC’s scrutiny and Commissioner Crenshaw’s objections to Ripple’s settlement, XRP remains resilient. The cryptocurrency’s price jump signals that investors are becoming more optimistic about Ripple’s future. The attached chart from TipRanks further illustrates this upward momentum, showing a solid recovery in recent days.
