SEC Seeks Court Approval for Ripple Settlement Amid Commissioner Opposition
The U.S.Securities and Exchange Commission (SEC) has filed a motion for court approval of a settlement with Ripple Labs. This comes despite opposition from one SEC commissioner over investor protection concerns.
According to the May 8 court filing,Ripple and the SEC have agreed to withdraw their appeals from the second Circuit Court of Appeals. This would conclude a legal battle that started in December 2020.Under the proposed deal, Ripple can resume sales without violating securities laws and recover $75 million of the $125 million held in escrow.
This move follows a 2023 ruling by Judge analisa torres. She found that XRP sales to public exchanges did not violate securities laws, but sales to institutional investors did. If approved, the court would release the $125 million civil penalty, with $50 million going to the SEC and the rest to Ripple.
However, SEC Commissioner Caroline A. Crenshaw criticized the settlement. She called it “a tremendous disservice to the investing public” in a dissent on the agency’s website.Crenshaw argued it weakens the SEC’s ability to hold crypto companies accountable.
Despite this, the SEC insists the agreement is fair and serves the public interest. The case has helped define legal boundaries around token sales, providing clarity to the crypto industry.
If approved, Ripple and the SEC will formally dismiss their appeals, ending a closely watched crypto case. Crenshaw’s criticism may spark new debates about SEC regulation of digital assets.
