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

U.S. Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw has expressed strong opposition to the proposed settlement between the SEC and Ripple, the company behind the cryptocurrency XRP. Crenshaw argues that the settlement would significantly undermine the SEC's regulatory authority over the crypto sector. In a statement released on May 8, she emphasized the long-term damage this settlement could inflict on the credibility of the agency's legal actions. "This settlement does a tremendous disservice to the investing public," Crenshaw stated, warning that it could further erode the court’s authority in interpreting securities laws.

The legal battle between Ripple and the SEC began in December 2020 when the SEC accused Ripple of selling XRP as an unregistered security. After years of litigation, the two parties are now pushing for a settlement. The proposed deal involves dissolving an injunction set for August 2024 and returning part of the $125 million in penalties to Ripple. However, Crenshaw believes this settlement sets a dangerous precedent, creating more questions than answers and leaving the industry without clear regulatory direction.

The settlement is not yet final. According to former federal prosecutor James Filan, Judge Torres must first issue an indicative ruling on the settlement. If the judge approves, the SEC and Ripple will file additional motions for the settlement to be fully accepted. Afterward, both sides hope to dismiss the SEC’s appeal and conclude the case.

Crenshaw’s comments provide insight into the SEC’s evolving approach to cryptocurrency regulation. While Ripple is pushing for a resolution, Crenshaw’s concerns highlight the rising uncertainty over the SEC’s future approach to crypto regulation. The case underscores the critical need for clear, comprehensive regulation in the space. "The settlement does not serve the best interests of the investors," she concluded.

Despite the ongoing regulatory challenges, Ripple’s XRP has shown resilience. In the past five days, XRP has surged by 5.81%, lifting its price to $2.36. This increase comes amid a broader crypto market rally, driven by easing global trade tensions and rising investor confidence in digital assets. The cryptocurrency’s price jump signals that investors are becoming more optimistic about Ripple’s future.