Ripple Nears Victory as SEC Settlement Sparks Internal Rift and Legal Uncertainty

The long and winding legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) appears to be approaching its final chapter —though not without internal resistance. On May 8, the SEC and Ripple filed a joint letter in a New York court, requesting the dissolution of an earlier injunction against Ripple and proposing the return of $75 million from a $125 million penalty escrowed since last year. But while the deal may hint at closure, it has ignited dissent within the SEC itself. Commissioner Caroline Crenshaw, known for her critical stance on the crypto industry, issued a sharp rebuke of the proposed settlement. In a public statement, Crenshaw argued that such a resolution would not only undermine the SEC’s previous enforcement victory but also dilute the regulator’s ability to police the crypto space moving forward. “This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public,” she wrote, suggesting it could weaken legal precedent and confuse the broader regulatory framework. Ripple SEC Legal Battle May Be Ending, But the Process Isn’t Over Although both parties have signaled their willingness to settle, the matter isn’t yet finalized. Former federal prosecutor James Filan emphasized that the judge overseeing the case, Analisa Torres, must first issue an “indicative ruling” signaling her approval of the proposed agreement. Only then can the case be temporarily remanded from the Second Circuit Court of Appeals to proceed with the formal settlement motion. If these procedural steps are completed—culminating in the dissolution of the injunction and fund distribution—the SEC and Ripple will request that both the appeal and cross-appeal be dismissed. At that point, the case that began in December 2020, when the SEC accused Ripple of selling XRP as an unregistered security, would finally be over. A Shifting Tone Under Trump-Era Oversight Crenshaw’s criticism also shines a light on the broader transformation unfolding at the SEC. Since the Trump administration returned to power, there’s been a marked softening of the agency’s tone toward digital assets—particularly compared to the aggressive enforcement style seen under former Chair Gary Gensler . More cases are being dropped, settlements are being reconsidered, and crypto firms are gradually finding room to breathe. Still, Crenshaw warned that this shift risks leaving investors unprotected and regulatory clarity in limbo. “The settlement is not in the best interests of the investors and markets that our agency is tasked with serving,” she concluded. Whether the courts will agree—or whether this signals a new era of crypto policy—is now up to Judge Torres. The post Ripple Nears Victory as SEC Settlement Sparks Internal Rift and Legal Uncertainty appeared first on TheCoinrise.com .

Source: The Coin Rise