Commissioner Crenshaw Questions US SEC’s Proposed Ripple Lawsuit Settlement
The post Commissioner Crenshaw Questions US SEC’s Proposed Ripple Lawsuit Settlement appeared on BitcoinEthereumNews.com. Crenshaw says the Ripple deal reverses court-confirmed investor protections. James Fillan argues that final court approval is required to close the Ripple case. SEC Commissioner Caroline Crenshaw has publicly objected to a proposed settlement with Ripple Labs, warning that it undermines investor protections and the legal foundation built over years of litigation. According to a statement by the SEC on May 8, the deal, which would see Ripple and its two top executives pay $50 million to the Securities and Exchange Commission, would bring to an end the ongoing litigation. Crenshaw argued in a statement that the agency’s current path is eroding previous legal wins and weakening the SEC’s credibility in courtrooms and the crypto industry. Crenshaw Says Deal Undermines Previous Court Rulings The Ripple case, initiated in 2020 under former SEC Chair Jay Clayton, focused on allegations of unregistered XRP sales. Courts later found that Ripple had violated securities laws in its institutional sales but not in its programmatic retail sales. The SEC initially sought $2 billion in penalties but secured only $125 million in civil penalties last year. Under the new deal, $75 million from that amount will be returned to Ripple, and a prior injunction will be dissolved. Crenshaw has described the agreement in a statement as a reversal that weakens protections already confirmed by court decisions. She said the new approach favors a hypothetical regulatory framework that is not yet in place. Settlement Follows Series of Dropped Cases Under Trump Since Trump’s return to office, the SEC has reversed course on several crypto enforcement actions. Crenshaw associated the Ripple agreement with this larger trend, which he described as a part of some “programmatic disassembly” of the agency’s crypto control. She warned that the deal could result in a “regulatory vacuum” as there would be no clear…
The post Commissioner Crenshaw Questions US SEC’s Proposed Ripple Lawsuit Settlement appeared on BitcoinEthereumNews.com.
Crenshaw says the Ripple deal reverses court-confirmed investor protections. James Fillan argues that final court approval is required to close the Ripple case. SEC Commissioner Caroline Crenshaw has publicly objected to a proposed settlement with Ripple Labs, warning that it undermines investor protections and the legal foundation built over years of litigation. According to a statement by the SEC on May 8, the deal, which would see Ripple and its two top executives pay $50 million to the Securities and Exchange Commission, would bring to an end the ongoing litigation. Crenshaw argued in a statement that the agency’s current path is eroding previous legal wins and weakening the SEC’s credibility in courtrooms and the crypto industry. Crenshaw Says Deal Undermines Previous Court Rulings The Ripple case, initiated in 2020 under former SEC Chair Jay Clayton, focused on allegations of unregistered XRP sales. Courts later found that Ripple had violated securities laws in its institutional sales but not in its programmatic retail sales. The SEC initially sought $2 billion in penalties but secured only $125 million in civil penalties last year. Under the new deal, $75 million from that amount will be returned to Ripple, and a prior injunction will be dissolved. Crenshaw has described the agreement in a statement as a reversal that weakens protections already confirmed by court decisions. She said the new approach favors a hypothetical regulatory framework that is not yet in place. Settlement Follows Series of Dropped Cases Under Trump Since Trump’s return to office, the SEC has reversed course on several crypto enforcement actions. Crenshaw associated the Ripple agreement with this larger trend, which he described as a part of some “programmatic disassembly” of the agency’s crypto control. She warned that the deal could result in a “regulatory vacuum” as there would be no clear…
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