SEC Commissioner Caroline Crenshaw Critiques Ripple Settlement, Highlighting Concerns Over SEC’s Regulatory Power
SEC Commissioner Caroline Crenshaw has openly expressed her disapproval of the SEC’s recent settlement with Ripple Labs, suggesting it might dilute the Commission’s influence over the digital currency sector. The settlement, finalized on May 8, 2025, concluded a legal confrontation that began in December 2020, with Ripple agreeing to a $50 million penalty. This amount is a reduction from the initial $125 million fine proposed by Judge Analisa Torres in August 2024. The agreement followed a court decision which found that Ripple’s sales of XRP on institutional levels breached securities laws, though sales on public exchanges did not.
Crenshaw voiced concerns that the settlement could weaken investor protections and the SEC’s ability to enforce its mandate effectively. She criticized the agreement for potentially creating a “regulatory vacuum,” exposing investors to risks until a comprehensive regulatory framework is put in place. Her remarks underscore existing divisions within the SEC regarding its approach towards cryptocurrency regulation and enforcement. Additionally, the settlement marks a shift in the SEC’s stance, moving away from stringent enforcement actions against crypto companies, as seen in previous lawsuits against firms like Coinbase and Kraken.
The resolution has notably affected the market, with XRP’s price experiencing a significant surge, trading around $2.38, indicating investor confidence post-settlement.
“SEC tempers its crypto enforcement stance as Ripple agrees to a $50M settlement, ending a significant legal saga. #SEC #Ripple #CryptoRegulation”
