US SEC Commissioner: "Ripple Settlement Undermines Court Judgment... Cannot Support"

Caroline Crenshaw, a commissioner of the US Securities and Exchange Commission (SEC), has publicly opposed the settlement between the SEC and Ripple, the issuer of XRP.

On the 8th (local time), Commissioner Crenshaw issued a statement saying, "The SEC announced a settlement that cancels the court order requiring Ripple to return over $75 million held in escrow and comply with the law," adding, "This settlement systematically dismantles the SEC's virtual asset regulatory program and harms investors." Commissioner Crenshaw stated, "(This settlement) also undermines the court's role in interpreting securities laws," and "for these reasons, I cannot support the settlement."

On the same day (8th), the SEC submitted the settlement agreement with Ripple to the court. The core of the settlement is to reduce the fine imposed on Ripple by the SEC from the original $125 million to $50 million. Additionally, according to the settlement, both the SEC and Ripple agreed to withdraw their appeals, ending the legal dispute between the two parties.

Commissioner Crenshaw emphasized that the SEC's decision undermines the court order. She stated, "(The settlement) nullifies both the civil penalty judgment and the injunction imposed by the court," adding, "The court's decision is effectively canceled, and the hundreds of hours the court invested in this matter will become meaningless."

Investor harm was also mentioned. Commissioner Crenshaw said, "(This settlement) raises more questions than it answers," and "(The settlement) does not align with the best interests of the markets and investors that the SEC should support and protect."

She also urged a review of the court's case. Commissioner Crenshaw stated, "I urge the court to thoroughly review the SEC's attempt to internally dismantle its enforcement program by withdrawing previously raised valid claims."