New Letter: This SEC Commissioner Disagrees With Ripple and XRP Case Settlement

In a recent tweet, prominent crypto commentator Crypto Eri weighed in on a recent statement issued by U.S. Securities and Exchange Commission (SEC) Commissioner Caroline A. Crenshaw. The commissioner publicly opposed the agency’s settlement with Ripple Labs, Inc., ending a multi-year legal dispute that began in December 2020. Crypto Eri shared the statement with a short caption: “Crenshaw puts out her strong dissent statement.” This signals attention to the unusual internal disagreement within the SEC over a high-profile case that has shaped much of the legal discourse around digital assets in the United States. “This is not a settlement ( @Ripple v @SECGov ) I can support.” Commissioner Caroline A. Crenshaw puts out her strong dissent statement. She wants to “gut its own enforcement program from the inside out.” https://t.co/0jyljz4nRN pic.twitter.com/A8enuWXgx5 — Crypto Eri ~ Carpe Diem (@sentosumosaba) May 9, 2025 Crenshaw Outlines Legal and Procedural Objections The statement, which was officially published by the SEC, outlines Commissioner Crenshaw’s reasoning for her dissent and is sharply critical of the settlement terms. Crenshaw reiterated that the original lawsuit against Ripple alleged the company and its executives sold XRP as unregistered securities, raising capital without proper disclosures. The district court partially agreed in its 2023 summary judgment, ruling that Ripple’s institutional sales of XRP constituted unregistered securities offerings. However, it did not apply that ruling to programmatic or secondary market sales. Despite this, Crenshaw noted with concern that the May 2025 settlement vacates the court-imposed injunction against Ripple and returns over $75 million held in escrow back to the company. According to her, this development eliminates key investor protections that were established through extensive litigation. She warned that if Ripple were to resume institutional sales of XRP without registration, the SEC, under the new approach, would take no enforcement action, nullifying the original court ruling. Criticism of the SEC’s Strategic Shift in Crypto Regulation Crenshaw argued in her statement that this resolution is inconsistent with the rule of law or the agency’s duty to protect investors. She expressed concern that the SEC is moving away from consistent enforcement of existing securities laws in the crypto space and towards a policy direction based on a still-undefined future regulatory framework. Commissioner Crenshaw emphasized that the new course of action appears to be motivated by a desire to appear more favorable to innovation, rather than a principled application of securities laws. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 She warned that this creates a legal and regulatory vacuum, offering no immediate clarity while simultaneously discarding the outcomes of prior legal proceedings. She also stated that such a reversal undermines the credibility of SEC attorneys who have spent years litigating these issues and damages the reliability of government processes. Crypto Eri Highlights Division Within SEC Leadership Crypto Eri’s decision to amplify this dissenting statement aligns with her history of following developments related to the XRP ecosystem. While her tweet did not include commentary beyond the headline, her post aimed to draw public attention to a significant moment within the SEC’s ongoing internal debate over crypto regulation. The dissent represents a clear split in the Commission’s stance on enforcement in the digital asset sector following a broader trend of recent case dismissals and settlements involving other crypto companies. Commissioner Crenshaw’s objections suggest that the SEC’s evolving approach may weaken previously established legal precedent and investor protections. Whether this reflects a temporary transition or a lasting change in regulatory policy remains to be seen. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post New Letter: This SEC Commissioner Disagrees With Ripple and XRP Case Settlement appeared first on Times Tabloid .

Source: TimesTabloid