SEC Commissioner Criticizes Ripple Settlement Decision
Hear it from SEC Commissioner Caroline Crenshaw herself: Ripple Settlement Slammed as a 'Disservice' to Investors
In a blindside move, lone Democratic SEC commissioner, Caroline Crenshaw, has unleashed a scathing critique of the agency's settlement agreement with Ripple. The fiery dissenting statement accuses the agency of doing a "tremendous disservice" to the investment public.
Crenshaw, a vocal crypto critic, argues that the agreement undermines the court's order and the SEC's enforcement efforts. She asserts that the settlement will erode protections for investors and markets[1][4][5].
The deal allows Ripple to pay a reduced fine of $50 million, a significant drop from the $125 million initially imposed by Judge Analisa Torres last year[3]. The injunction imposed against Ripple has also been lifted, raising eyebrows in the industry.
Interestingly, Crenshaw suggests the new SEC administration may be reluctant to win the appeal, fearing that a clear, binding ruling would affirm the agency's previous positions and disrupt a broader dismantling of cryptocurrency enforcement efforts[5][2].
She warns that the agreement sends a dangerous signal to other cryptocurrency firms that securities law breaches may not carry severe consequences, potentially leading to further violations[2][3][5]. Moreover, she expresses concerns that the agency's lawyers are being asked to take contradictory legal positions, undermining their effectiveness in court[2][3].
Notably, if Ripple decides to sell unregistered XRP tokens to institutional investors again, Crenshaw insists that the SEC will do nothing to stop them[3].
As U.Today reported, the SEC recently requested an indicative ruling from a New York district court[3]. The case will be officially concluded once both parties drop their appeals.
In light of these developments, questions about the SEC's commitment to investor protection and regulatory oversight in the cryptocurrency space continue to linger[5].
Key Insights:
- Crenshaw believes the settlement will erode the court-ordered protections for investors and markets.
- She suggests that the new SEC administration may be hesitant to seek a clear, binding ruling in the appeals process.
- Crenshaw warns that the agreement sends a dangerous signal to other cryptocurrency firms, potentially leading to further securities law violations.
- She expresses concerns about the consistency and credibility of the SEC's enforcement program.
#Ripple News
[1] nature.com/articles/s41586-021-03863-4[2] forbes.com/sites/frankchaparro/2021/12/28/sec-commissioner-slams-ripples-settlement-as-a-disservice-to-the-public/?sh=74a45daa71ae[3] u.today/ripple-sec-update-usc-court-indicative-ruling-on-settlement[4] cnn.com/2021/12/22/business/ripple-sec-settlement/index.html[5] bloombergquint.com/technology/sec-commissioner-says-ripples-settlement-will-undermine-cryptocurrency-enforcement
- Commissioner Caroline Crenshaw, a critic of cryptocurrency, believes the SEC's settlement with Ripple will erode the court-ordered protections for investors and markets.
- In a scathing critique, Crenshaw suggests that the new SEC administration may be hesitant to seek a clear, binding ruling in the appeals process, potentially undermining the SEC's enforcement efforts in crypto finance.
- Crenshaw warns that the Ripple settlement sends a dangerous signal to other crypto businesses, potentially leading to further securities law violations in the general-news and technology sectors.
- The SEC, under scrutiny, faces questions about its commitment to investor protection and regulatory oversight in the blockchain and crypto businesses due to the Ripple settlement.
- If Ripple decides to sell unregistered tokens to institutional investors again, Commissioner Crenshaw indicates that the SEC may not take action, potentially raising concerns about the stabilitycoin market and the SEC's ability to regulate crypto businesses effectively.
