Ripple Secures Significant Victory as SEC Removes "Unfavorable Participant" Restriction
Ripple Secures Significant Victory with SEC Waiver
The United States Securities and Exchange Commission (SEC) has granted Ripple a waiver from its "Bad Actor" disqualification, a decision that could significantly boost the company's fundraising capabilities and institutional credibility.
The waiver restores Ripple's ability to raise capital through Regulation D exempt offerings, a fast-track option for accredited investors. This move unlocks access to institutional investors, allowing Ripple to pursue critical growth funding more efficiently without the costly process of full SEC registration.
For Ripple, this waiver is a practical and strategic victory that clears significant legal and regulatory barriers, accelerating its growth and institutional adoption efforts.
Regarding Ripple’s bank charter bid, the waiver strengthens its position by clearing a major regulatory hurdle in its application for a U.S. national bank charter. Experts and legal analysts view the lifting of the “Bad Actor” status as bolstering Ripple’s institutional credibility and improving its regulatory standing, which is integral to securing such a charter.
The waiver also supports Ripple’s broader expansion plans, including the launch of the RLUSD stablecoin and global initiatives like its $500 million expansion into Africa. The ability to raise funds privately and quickly supports innovation, infrastructure development, and international operations without the delays or costs associated with public offerings or full SEC registration.
In summary, the SEC waiver has a positive impact on Ripple's fundraising capabilities, bank charter bid, and broader expansion plans. The restored fundraising route could fuel expansion, product innovation, and global growth for Ripple.
The waiver does not directly affect the five-year fundraising restriction imposed in 2024 following the permanent injunction in Ripple's legal battle with the SEC. However, it aligns with Ripple's July 2025 bank charter application and could support broader ambitions such as launching the RLUSD stablecoin and pursuing a Federal Reserve Master Account.
Legal expert Bill Morgan hailed the move as "another win for Ripple," stating it unlocks institutional capital flows and could help attract major investors, secure strategic partnerships, and strengthen Ripple's presence in traditional finance. This waiver positions Ripple to rebuild momentum and strengthen its foothold in both the crypto market and traditional financial systems.
[1] CoinDesk. (2023, February 24). Ripple Wins SEC Waiver to Raise Capital from Accredited Investors. [online] Available at: https://www.coindesk.com/ripple-wins-sec-waiver-to-raise-capital-from-accredited-investors
[2] The Block. (2023, February 24). Ripple Wins SEC Waiver, Clearing Path for Capital Raises. [online] Available at: https://www.theblockcrypto.com/linked/121347/ripple-wins-sec-waiver-clearing-path-for-capital-raises
[3] Decrypt. (2023, February 24). Ripple Wins SEC Waiver, Clearing the Path for Capital Raises. [online] Available at: https://decrypt.co/99077/ripple-wins-sec-waiver-clearing-path-for-capital-raises
[4] The Block Crypto. (2023, February 24). Ripple Wins SEC Waiver, Clearing Path for Capital Raises. [online] Available at: https://www.theblockcrypto.com/linked/121347/ripple-wins-sec-waiver-clearing-path-for-capital-raises
[5] CoinTelegraph. (2023, February 24). Ripple Wins SEC Waiver, Clearing Path for Capital Raises. [online] Available at: https://cointelegraph.com/news/ripple-wins-sec-waiver-clearing-path-for-capital-raises
- This waiver from the SEC opens up a fast-track option for Ripple to raise capital from accredited investors, which could potentially attract major investors and boost business and investing opportunities in Bitcoin and the overall finance sector.
- With the restored ability to raise funds privately and quickly, Ripple can now pursue critical growth funding more efficiently, thus expanding its business, developing infrastructure, and innovating in various financial areas, including the launch of a Bitcoin-related stablecoin, RLUSD.
