SEC’s Crenshaw slams Ripple settlement, warns of ‘regulatory vacuum’
A settlement letter has been filed by the SEC and Ripple in a New York court, seeking to dissolve an August 2024 injunction against Ripple and return $75 million of a $125 million civil penalty. SEC Commissioner Caroline Crenshaw criticized the settlement, claiming it undermines the agency's regulatory authority and investor protections. She expressed concerns that accepting the settlement would create a regulatory vacuum and erode the credibility of the SEC's legal positions. The settlement follows a judge's ruling in August 2022 that Ripple's XRP token is considered a security only when sold to institutional investors. The settlement is not finalized; Judge Torres must first provide an indicative ruling before further steps can be taken to conclude the case. The SEC initially sued Ripple in December 2020 for selling unregistered securities.
