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The U.S. Securities and Exchange Commission (SEC) granted Ripple Labs a waiver on Aug. 8, 2025, from a Regulation D disqualification provision tied to a prior injunction. The case began with a complaint filed on Dec. 22, 2020, in the U.S. District Court for the Southern District of New York, in which the SEC alleged that Ripple’s sale of XRP violated Section 5 of the Securities Act of 1933.

The court issued a final judgment on Aug. 7, 2024, permanently enjoining Ripple from further violations. Both parties filed appeals before moving toward a settlement in May 2025 and fully withdrawing their appeals last week. The settlement sought to have the court dissolve the injunction, which would have removed Ripple’s inability to use Regulation D’s Rule 506 exemption for certain private offerings. However, the district court rejected that request, prompting the SEC to issue the waiver.