In vigorous opposition, the Commissioner for Stock Stock and Stock Exchange (SEC) Caroline Crenshaw publicly condemned the last settlement agreement between the agency and Ripple Labs with its management.
Ripple victory
. settlementThe announced on Thursday, follows the long legal battle, which began in December 2020, when Sec, under the then manager of Jay Clayton, sued Ripple for the alleged sale of unregistered securities in the form of cryptocurrency XRP.
The SEC claim claimed that Ripple and its leaders raised their capital by selling XRP without registering it as required Securities provisions. The court finally ruled that the institutional sale of Ripple XRP is an unregistered offer and sale of investment contracts, violating Section 5 of the Act on securities of 1933.
However, the court also determined that another secondary sales were not subject to this violation. As a result, Ripple was received an order to pay a civil penalty exceeding $ 125 million and was permanently stopped from future violations. Both sides then appealed against the decision.
The newly announced settlement allows Ripple to recover over $ 75 million in Escrow and leaves the court order, which required compliance with the law.
Crenshaw calls the courts to reconsider the change of SEC
Crenshaw criticized This result, arguing that he undermines the court’s power and the integrity of the SEC enforcement program. She expressed fear that the settlement effectively annul the civil penalty of the Tribunal and allows Ripple to circumvent the law without consequences.
“If Ripple decides tomorrow to sell unregistered XRP tokens to institutional investors – on the usual state of the court’s decision – this commission will do absolutely nothing in this,” she said.
Crenshaw also emphasized that the settlement reflects the disturbing change of SEC to regulate cryptocurrencies, which suggests that it reduces the agency’s ability to enforce existing regulations.
She pointed out that the resolution raises more questions than answers, especially in relation to the security of investors and Legal implications earlier ruling of the Tribunal. “It creates an endless regulatory vacuum,” she regretted.
The Commissioner emphasized her confidence in the SEC legal arguments presented in the ongoing appeal to the second circuit. She expressed concern that the agency may withdraw from previous positions in favor of a more gentle regulatory position, which according to her may undermine the protection of investors that SEC is authorized to maintain.
Crenshaw ended her comments, calling for judgments to examine SEC to withdraw claims and re -consider the implication of this settlement for the future of the enforcement program.
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