According to Yahoo, a senior SEC official has publicly objected to the proposed settlement terms, raising concerns about the precedent it could set for future enforcement in the digital asset sector.
The settlement proposal, submitted on 8 April 2025 to the US District Court, outlined that Ripple would pay USD 50 million to the SEC, while approximately USD 75 million held in escrow would be returned to the company. The agreement, which still awaits judicial approval, was seen as a potential end to a legal process that began in 2020.
On 8 May 2025, a dissenting statement was submitted to Judge Analisa Torres by an SEC commissioner, who argued that the deal could be interpreted as weakening the court's authority. According to the filing, the official warned that the proposed terms may encourage crypto firms to downplay the risk of regulatory penalties. Specifically, the commissioner pointed to the decision not to impose additional fines, suggesting it could lead market participants to believe that violations of securities laws may go largely unpunished.
The legal dispute originated in 2020 when the SEC accused Ripple of conducting unregistered securities sales through its XRP token. A partial ruling later found that Ripple had breached securities laws in transactions involving institutional investors, although sales on secondary markets such as exchanges were not deemed violations. The court imposed a USD 125 million penalty and ordered Ripple to cease any further unregistered securities offerings.
Meanwhile, the SEC continues its efforts to shape a dedicated regulatory framework for digital assets. Though various agency representatives have pushed for clearer rules, a comprehensive regime remains undeveloped.
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