Caroline Crenshaw, a commissioner at the US Securities and Exchange Commission (SEC), who is known for her skepticism of cryptocurrencies, has voiced her disapproval of the recent settlement letter that could potentially conclude the ongoing Ripple legal battle. The joint settlement letter, filed by the SEC and Ripple in a New York court, has requested the dissolution of the injunction against Ripple set for August 2024. Furthermore, it has asked for the return of $75 million out of the $125 million civil penalties held in escrow to the cryptocurrency company, as per a statement by the SEC on May 8.
In a statement on the same day, Commissioner Crenshaw vehemently opposed the impending agreement, asserting that it undermines the court’s rulings and weakens the regulator’s control over cryptocurrency companies. She claimed, “This settlement, in conjunction with the systematic dismantling of the SEC’s crypto enforcement program, significantly harms the investing public and undermines the court’s role in interpreting our securities laws.”
Crenshaw further expressed concern that the settlement, if accepted by Judge Torres, would essentially nullify “the investor protections we already won” and create a “regulatory void,” pending the development of a regulatory framework by the crypto task force.
The controversial Ripple case is far from over. Even though the SEC and Ripple have reached an agreement on the settlement, multiple steps remain before the longstanding legal saga can finally conclude. James Filan, an ex-federal prosecutor, stated that Judge Torres needs to provide an indicative ruling on the settlement letter, which if approved, would lead to another motion being filed for the agreed settlement.
