SEC Commissioner Caroline Crenshaw isn't holding back. She’s publicly roasted the SEC’s recent settlement with Ripple Labs, warning it signals a major retreat from meaningful crypto enforcement. According to Crenshaw, this move is doing investors no favors and weakens the SEC's ability to enforce rules properly.

"This settlement, alongside the dismantling of the SEC’s crypto enforcement program, does a tremendous disservice to the investing public and undermines the court’s role in interpreting our securities laws," Crenshaw fired off in a statement following the news. Yikes.

Ripple’s $50 Million Settlement with the SEC

On Thursday, the SEC announced that Ripple and its top brass, CEO Brad Garlinghouse and Executive Chairman Chris Larsen, would fork over $50 million to settle the case, originally filed in 2020 under former SEC Chair Jay Clayton. The case accused Ripple of raising funds via the unregistered sale of XRP tokens, leaving investors in the lurch without proper disclosures.

Initially, the SEC was gunning for a $2 billion penalty, but after much back-and-forth in court, a judge decided Ripple should only pay $125 million in civil penalties last year. This new deal vacates that penalty and hands back more than $75 million from escrow, lifting the previous injunction against Ripple.

The SEC’s Shifting Stance on Crypto

Crenshaw, who wrapped up her term as commissioner in 2024, isn’t thrilled about the SEC’s new direction on crypto. She called it a "programmatic shift," warning that the SEC is rolling back on previous court wins in favor of potential, yet undefined, rule changes that may take years to implement.

In her words, "We are accepting a diluted settlement that erases the investor protections we already won, based on a non-existent framework that may or may not come to fruition." Sounds like a pretty risky bet.

A Blow to SEC Credibility

Crenshaw also took aim at the SEC’s credibility, stating that the agency’s lawyers are now being asked to make legal arguments that contradict what they’ve said just months ago. Ouch. The tension inside the SEC is rising, as the agency seems to be adopting a friendlier stance on crypto, especially after President Donald Trump returned to office and dropped multiple crypto cases.

XRP’s Rise Amidst the Drama

As for Ripple's XRP token? It’s holding strong, with a market cap topping $132 billion and a 6.5% increase on the day, currently sitting at $2.38. Looks like Ripple’s not too phased by the SEC drama, and that’s probably just the beginning of this soap opera!

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