SEC's Crenshaw criticizes Ripple's settlement decision, warns of 'legal loophole'

U.S. Securities and Exchange Commission Commissioner Caroline Crenshaw stated that if approved, the settlement agreement with Ripple will join the long list of dismissals that are gradually undermining the reputation of SEC lawyers in court.

A cryptocurrency-skeptic commissioner at the U.S. Securities and Exchange Commission has criticized her agency over the settlement letter that could end the litigation involving Ripple.

According to the SEC's statement on May 8, the SEC and Ripple have jointly filed a settlement request with the New York court to lift the injunction against Ripple in August 2024 and return $75 million of the $125 million civil penalty being held in escrow for this cryptocurrency company.

SEC Commissioner Caroline Crenshaw criticized the pending agreement in a statement on May 8, stating it would harm the ability of regulators to oversee cryptocurrency companies and undermine court rulings.

She said: “This agreement, along with the dissolution under the SEC's cryptocurrency enforcement program, causes significant harm to the investing public and undermines the role of the courts in interpreting our securities laws.”

“Meanwhile, this settlement agreement is part of a series of dismissals that erode the credibility of lawyers in court, who are required to take a legal stance today that contradicts the position taken just a few months ago.” #SEC