XRP News Today: SEC Commissioner Opposes Ripple Settlement, Citing Investor Protection Concerns

In a recent development, U.S. Securities and Exchange Commission (SEC) Commissioner Caroline A. Crenshaw publicly opposed the agency’s settlement with Ripple Labs, Inc., marking a significant 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. The settlement, which ended a multi-year legal dispute that began in December 2020, has drawn attention to the unusual internal disagreement within the SEC.

Commissioner Crenshaw’s dissenting statement, officially published by the SEC, outlines her reasoning for opposing the settlement terms. She 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.

Crenshaw argued 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.

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 commentator Crypto Eri highlighted this dissenting statement, aligning 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. The internal disagreement within the SEC underscores the complexity and evolving nature of digital asset regulation, with significant implications for the future of the industry.