From Cointelegraph

May 8, 2025 8:44 pm:

A crypto-skeptical SEC commissioner criticized a proposed settlement to end the Ripple legal saga, arguing it undermines investor protections and creates a regulatory vacuum, potentially eroding the SEC’s credibility. The settlement would dissolve an August 2024 injunction against Ripple and return $75 million of the $125 million in civil penalties.

The SEC, under the Trump administration, has been softening its stance on crypto firms, dismissing enforcement actions. Commissioner Crenshaw fears the settlement could harm investor interests and market integrity while leaving regulatory uncertainty until a crypto task force establishes a framework. The Ripple case began when a judge ruled XRP tokens were covered by securities laws.

Although the SEC and Ripple have agreed to a settlement, ex-prosecutor James Filan explains the legal saga isn’t over yet. Judge Torres must provide an indicative ruling, after which the SEC and Ripple will seek a limited remand from the Second Circuit Court of Appeals to finalize the settlement. This process involves dissolving the injunction, distributing funds, and dismissing appeals.

The SEC initiated legal action against Ripple Labs in December 2020, alleging the firm unlawfully sold its token as an unregistered security. The proposed settlement, if approved, would mark a significant development in the ongoing legal battle between the SEC and Ripple. The outcome remains uncertain pending further court decisions.

Read more at Cointelegraph: SEC’s Crenshaw slams Ripple settlement, warns of ‘regulatory vacuum’