A crypto-skeptic commissioner at Securities and Exchange Commission of the United States castigated his agency on his settlement letter which could finally end the legal saga Ripple.
The SEC and Ripple filed a joint settlement letter before a New York court asking that the August 2024 injunction against Ripple is dissolved and $ 75 million out of the $ 125 million in civil penalties detained in receivership to be returned to the cryptographic company, according to a press release of May 8.
SEC Commissioner Caroline Crenshaw denounced the pending agreement in a press release of May 8, claiming that this would damage the capacity of regulators to maintain cryptographic companies online and undermine the court’s decision.
“This regulation, alongside the programmatic disassembly of the application for the CRIA CLAIR application, is a bad service to public investment and undermines the role of the court in the interpretation of our securities laws,” she said.
“In the meantime, the regulations join a line of layoffs which collectively erodes the credibility of our lawyers before the court which are invited to take legal positions today contrary to those taken a few months ago.”
Under the Trump administration, the SEC slowly fell its hard position towards cryptographic companies forged under the reign of the former SEC president, Gary Gensler, rejecting an increasing number of measures responsible for the law against cryptographic companies.
At the same time, Crenshaw maintains that if Judge Torres accepts the regulations, he would erase “the protections of the investors that we have already won” and leave a “regulatory emptiness”, until the crypto-tasting working group releases a regulatory framework.
“The regulations are not in the best interest of investors and markets that our agency is responsible for serving and protecting. He creates more questions than answers. “
In August of last year, a judge ordered Ripple to pay $ 125 million in penalties after deciding that the company’s XRP (XRP) token was covered by the securities laws when sold to institutional investors.
What is the next step for the Ripple case? It’s not over yet
Although the dry and the undulation agreed with a regulation, it is still not an agreement concluded, according to the former federal prosecutor James Filan, because there are several stages before the long -standing legal saga could conclude.
To begin with, Judge Torres must provide an indicative decision if she accepts the settlement letter, Filan said in an analysis of May 8 on X.
If Torres provides an indicative decision, the SEC and Ripple will ask the second Cour of Apals for a referral to the Torres judge, which, if granted, will lead to another request filed for the agreed regulations, according to Filan.
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“After the injunction has been dissolved and the funds distributed, the dry and the ripple will ask the court of appeal to reject the appeal of the dry and the appeal of Ripple. Then it will be finished,” he said.
The SEC initially launched a legal action against Ripple Labs in December 2020, accusing the firm of illegally selling its token as unregistered security.
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