XRP News Today: Ripple gains fundraising flexibility as SEC lifts bad actor designation

Generated by AI AgentCoin World
Sunday, Aug 10, 2025 5:31 am ET1min read
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Aime RobotAime Summary

- SEC grants Ripple administrative waiver, removing "Bad Actor" designation to ease private fundraising restrictions.

- Waiver allows Ripple to access capital without resolving underlying XRP securities law dispute or $75M fine appeal.

- Relief signals potential regulatory flexibility for crypto firms, though legal uncertainty persists over XRP's classification.

- Market reacts cautiously as Ripple gains operational flexibility but faces ongoing SEC enforcement risks.

Ripple has received significant regulatory relief following a recent administrative waiver granted by the U.S. Securities and Exchange Commission (SEC), according to analysis from Marc Fagel, a former SEC lawyer. The waiver removes the “Bad Actor” designation that had previously barred

Ripple
from utilizing Regulation D exemptions, a tool commonly used by private companies to raise capital without full SEC registration [1]. This change allows Ripple to engage in private fundraising more efficiently, potentially supporting its expansion in product development and market reach [1].

Fagel explains that while the waiver does not erase the court’s earlier finding that Ripple violated securities laws in its past institutional sales of

XRP
, it effectively neutralizes a key operational restriction under the ongoing injunction [2]. The former lawyer notes that the legal consequences of the injunction would be rendered “largely moot” if the law were to change, as the court’s ruling was based on the legal framework in effect at the time of the alleged misconduct [2]. This interpretation suggests a more flexible regulatory approach from the SEC, offering targeted relief rather than imposing blanket enforcement measures [2].

The waiver is seen as a significant development in the broader context of the legal battle between Ripple and the SEC, which has lasted for years and centered on whether XRP should be classified as a security. While the waiver does not resolve the underlying legal dispute, it provides Ripple with immediate operational benefits by easing restrictions on capital formation [3]. The company has also been navigating appeals of a $75 million fine imposed by a U.S. district judge, but an early August settlement halted further legal proceedings on that issue [3].

The decision to lift the “Bad Actor” label could have broader implications for the crypto industry. It may encourage other firms facing similar regulatory challenges to seek customized relief, and it signals a shift in the SEC’s enforcement strategy, particularly under the current administration [2]. Ripple’s ability to access private capital without the previous compliance hurdles could support strategic growth initiatives, including potential partnerships and product expansions [1].

However, the long-term legal uncertainty remains. The SEC’s waiver is not a legal resolution, and the outcome of Ripple’s defense—arguing that XRP is not a security—will continue to shape the regulatory landscape for digital assets. Market participants remain cautious, with mixed reactions to the news as traders await further developments in the case [1].

Source:

[1] "Ex-SEC Lawyer Explains What SEC’s Recent Waiver Means for Ripple and XRP", Times, https://timestabloid.com/ex-sec-lawyer-explains-what-secs-recent-waiver-means-for-ripple-and-xrp/

[2] "Ripple Wins Key Victory as SEC Lifts Bad Actor Rule and Eases Fundraising", MoneyCheck, https://moneycheck.com/ripple-wins-key-victory-as-sec-lifts-bad-actor-rule-and-eases-fundraising/

[3] "The Government Fined This Farm Over", AOL.com, https://www.aol.com/news/government-fined-farm-over-550-220323070.html