On the afternoon of May 9, 2025, SEC Commissioner Caroline Crenshaw criticized the $50 million settlement with Ripple, calling it a blow to investor protection and the law, amidst the SEC's shift towards crypto under Trump. Will the market embrace this turning point? Let's analyze.
Ripple Settlement: Reduced Penalty, Change of Direction
On May 8, 2025, the SEC announced a settlement with Ripple and two senior executives – CEO Brad Garlinghouse and Chairman Chris Larsen – with a fine of $50 million, reduced from $125 million that the court ruled last year. More than $75 million in the escrow fund will be returned, while the previous ban will be lifted. The lawsuit started in 2020 under Chairman Jay Clayton, when the SEC accused Ripple of raising funds through unregistered XRP sales, causing information harm to investors. The court later determined that Ripple violated by selling to institutions but did not violate by selling automatically to retail investors.
Crenshaw Opposes: Protecting Investors at Risk
Commissioner Crenshaw, whose official term ends in 2024 but has been extended for 18 months, strongly opposes. She calls this settlement a 'systematic dismantling' of the crypto enforcement program, harming public investment and the role of the court in interpreting securities law. She worries that the SEC is giving up legal victories in exchange for a future regulatory framework that is unclear, even requiring lawyers to reverse previous legal positions, undermining the agency's credibility.
Crenshaw, who is skeptical of crypto and has previously opposed Bitcoin ETFs, emphasizes: 'We are accepting a weak settlement that removes protections for investors that have been achieved, based on a nonexistent legal framework.'
Changes Under Trump
Since Trump took office, the SEC has reduced many crypto lawsuits, reflecting a friendlier approach. This contrasts with the time of Gary Gensler, when the SEC intensified crackdowns on major digital asset companies. The new trend indicates a strategic shift, although Crenshaw warns of long-term risks.
Impact on the Market
This event brings many positive signals:
XRP Price Increase: 6.5% rise to $2.31, market capitalization of $132 billion, consolidating its top 4 global position.
Boosting confidence: Crypto fund inflows reached $3.4 billion last week, Bitcoin ETFs attracted $1.8 billion, and an estimated accumulation of $330 billion into Bitcoin by 2029.
Opening up for innovation: Trump's lenient policies may boost DeFi and altcoins.
Future Prospects
If this trend continues in the next 1-2 years, crypto may develop strongly, especially as the legal framework becomes clearer. However, Crenshaw is concerned that inconsistency will have a long-term impact on investors.
Conclusion: Will Crypto Thrive or Lose Direction?
The $50 million settlement with Ripple marks a significant change under Trump, although Crenshaw warns of the risk of losing investor protection. With XRP rising 6.5% to $2.31 and strong institutional inflows, the crypto market promises to break out. Investors should closely monitor to seize the trend.
Risk warning: Investing in crypto carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.
