Commissioner Crenshaw Challenges SEC Over Ripple Lawsuit Settlement
The post Commissioner Crenshaw Challenges SEC Over Ripple Lawsuit Settlement appeared on BitcoinEthereumNews.com. Settlement dissolves $125M penalty, returns $75M to Ripple. The deal may erase the court’s prior ruling on XRP sales violations. Commissioner Caroline Crenshaw has gone to the public to criticise the proposed settlement of the SEC-Ripple Labs case, which has caused internal divisions within the United States Securities and Exchange Commission. Ripple filed the agreement on May 8, 2025 to end a long legal fight that had gone on for four years over sales of its XRP token. According to Crenshaw, the settlement erodes investor protections and erodes the SEC’s regulatory authority. In December 2020, SEC accused Ripple of raising $1.3 billion from unregistered XRP sales in contravention of securities laws. In 2024, a court ordered an injunction, which required Ripple to pay $125 million in penalties and limit the future sales of XRP. The revised settlement decreases the penalty to $50 million. It allocates a total of $75 million to Ripple from the escrow process and aims to lift the injunction, subject to a court order. In his dissent issued on May 8, 2025, Crenshaw indicates his fears of the settlement’s implications. She said the agreement overrules the prior ruling by the court which ruled that Ripple was liable for illegal institutional XRP sales. By wiping away penalties and restrictions, the deal could enable Ripple to get back to doing the same things without consequences, she warned. Settlement Details and Court Process Judge Anañsa Torres of the New York court system received the letter outlining all the details of the arrangement. A request to return the $125 million held in trust is made by either the SEC or Ripple to the court. Half a billion dollars goes to the SEC, and the other half goes to Ripple. Both parties also agreed to withdraw their appeals. This was a sign…
The post Commissioner Crenshaw Challenges SEC Over Ripple Lawsuit Settlement appeared on BitcoinEthereumNews.com.
Settlement dissolves $125M penalty, returns $75M to Ripple. The deal may erase the court’s prior ruling on XRP sales violations. Commissioner Caroline Crenshaw has gone to the public to criticise the proposed settlement of the SEC-Ripple Labs case, which has caused internal divisions within the United States Securities and Exchange Commission. Ripple filed the agreement on May 8, 2025 to end a long legal fight that had gone on for four years over sales of its XRP token. According to Crenshaw, the settlement erodes investor protections and erodes the SEC’s regulatory authority. In December 2020, SEC accused Ripple of raising $1.3 billion from unregistered XRP sales in contravention of securities laws. In 2024, a court ordered an injunction, which required Ripple to pay $125 million in penalties and limit the future sales of XRP. The revised settlement decreases the penalty to $50 million. It allocates a total of $75 million to Ripple from the escrow process and aims to lift the injunction, subject to a court order. In his dissent issued on May 8, 2025, Crenshaw indicates his fears of the settlement’s implications. She said the agreement overrules the prior ruling by the court which ruled that Ripple was liable for illegal institutional XRP sales. By wiping away penalties and restrictions, the deal could enable Ripple to get back to doing the same things without consequences, she warned. Settlement Details and Court Process Judge Anañsa Torres of the New York court system received the letter outlining all the details of the arrangement. A request to return the $125 million held in trust is made by either the SEC or Ripple to the court. Half a billion dollars goes to the SEC, and the other half goes to Ripple. Both parties also agreed to withdraw their appeals. This was a sign…
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