SEC Commissioner Slams Ripple Settlement as a Blow to Enforcement

The settlement was revealed on May 8, and seeks to dissolve a 2024 injunction and return $75 million of the $125 million in penalties held in escrow. Meanwhile, Ripple is also entangled in political controversy after a lobbyist allegedly tricked Donald Trump into promoting XRP for his proposed national cryptocurrency reserve. Trump shared that he felt misled, and reportedly severed ties with the lobbyist, although he later signed an executive order establishing a national “Digital Asset Stockpile.” Despite the turmoil, Ripple gained a win in the private sector with Wellgistics Health announcing it will integrate XRP into its payment system for real-time healthcare settlements. XRP’s price surged by almost 7% after the settlement news and the announcement from Welligistics Health. However, resistance to crypto innovation is still very strong. Ripple Settlement Could Undermine Investor Protections A crypto-skeptical commissioner at the US Securities and Exchange Commission (SEC) voiced strong opposition to the agency’s proposed settlement with Ripple. In a joint letter that was filed in a New York court, the SEC and Ripple requested the dissolution of a 2024 injunction and the return of $75 million of the $125 million in penalties held in escrow to the crypto firm. The move was revealed in a May 8 statement , and caused backlash from SEC Commissioner Caroline Crenshaw. She argues that the deal weakens the regulator’s authority and undermines investor protections. Statement from Commissioner Caroline Crenshaw Crenshaw warned that the agreement could erode the credibility of the SEC’s legal team and destabilize the interpretation of securities laws. She is especially concerned about the regulator’s shifting stance under the Trump administration after the hardline approach of former SEC Chair Gary Gensler. She believes this signals a retreat from meaningful crypto enforcement. “This settlement, alongside the programmatic disassembly of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws,” Crenshaw stated. Crenshaw added that the deal threatens to create a “regulatory vacuum” and diminish previous legal victories that were meant to protect investors. Her comments shed some light on the growing internal division at the agency as it grapples with how to regulate the crypto industry. The SEC originally sued Ripple Labs in December of 2020, alleging it sold XRP as an unregistered security. In August 2024, a judge ruled XRP sales to institutional investors fell under securities laws, and ordered Ripple to pay $125 million in penalties. Despite the joint settlement agreement, former federal prosecutor James Filan said that the legal saga is not yet over. Judge Analisa Torres must issue an indicative ruling signaling her agreement with the deal. If she does, both parties will then ask the Second Circuit Court of Appeals for a limited remand to proceed with formalizing the settlement. Only after the injunction is officially lifted, the funds returned, and both the SEC’s appeal and Ripple’s cross-appeal are dismissed, will the case officially be over. Ripple Lobbyist Duped Trump Into Promoting XRP Ripple is facing controversy from other political fronts as well. US President Donald Trump was reportedly misled by a lobbyist with ties to Ripple Labs into endorsing XRP as part of a proposed national cryptocurrency reserve. Trump post (Source: Truth Social ) According to a May 8 report from Politico , a staff member working for pro-Trump lobbyist Brian Ballard suggested language for a social media post promoting a strategic crypto reserve that would include XRP, Solana, and Cardano. Trump shared the post on his platform on March 2, but later discovered that Ripple was a client of Ballard. Trump ended up expressing anger over being manipulated. Two sources close to the matter said that Trump felt used and declared Ballard unwelcome in future activities. The relationship between Ripple and Trump’s circle reportedly extends back years. Ripple’s Chief Legal Officer Stuart Alderoty contributed more than $300,000 to Trump-affiliated campaign and political action committees during the 2024 election cycle . Both Alderoty and Ripple CEO Brad Garlinghouse also attended meetings with Trump during his transition into office and participated in inauguration events. Ripple itself also contributed $5 million worth of XRP to Trump’s inaugural fund and is still a major donor to Fairshake, a PAC supporting pro-crypto political candidates. Fairshake stated that it will continue these efforts during the 2026 midterm elections. Despite the controversy, Trump still proceeded with crypto-related policymaking just days after the social media post. On March 6, he signed an executive order establishing a “Digital Asset Stockpile,” formalizing his administration’s move toward a national crypto reserve. The March 2 post was still visible on his social media at press time. XRP price action over the past 24 hours (Source: CoinMarketCap ) Over the past 24 hours of trading, the price of XRP shot up by close to 7%, likely due to the settlement news with the SEC. As a result, XRP was trading hands at $2.32. The altcoin was also in the green by over 4% on its weekly time frame. XRP Powers New Healthcare Payment System Despite the tensions surrounding Ripple and its token, there are still some positive developments related to the project. Wellgistics Health, a healthcare infrastructure company, announced on May 8 that it will integrate XRP and related blockchain technologies into its payment network to streamline financial transactions across the healthcare supply chain. Wellgistics Health announcement The company plans to use XRP to facilitate instant, low-cost settlements between pharmacies, medical suppliers, and prescription drug manufacturers. CEO Brian Norton believes that future success in healthcare will depend on speed, data integrity, and platform efficiency, and added that Wellgistics is investing in next-generation infrastructure rather than relying on outdated systems. The company is especially impressed with XRP’s near-instant finality and transaction fees that cost fractions of a cent. This is a lot different than legacy systems like ACH payments and wire transfers. By leveraging blockchain payment rails, Wellgistics wants to eliminate cross-border friction and create real-time settlement capabilities, enabling new business models and expanding access to global markets, particularly for underserved regions and developing economies. Unfortunately, the broader financial industry still pushes back against crypto-based innovations. Traditional banks criticized the GENIUS stablecoin bill that was introduced in March 2025, and warned that it could undercut their market dominance by allowing stablecoin providers to offer similar services without the same level of regulation. US Senator Elizabeth Warren wanted to impose strict provisions in the bill, requiring any stablecoin issuers operating in the US to do so under the oversight of established financial institutions. Despite initial bipartisan support, the GENIUS bill failed to move forward after meeting resistance from Democratic lawmakers.

Source: Coinpaper