Recent updates indicate that the U.S. Securities and Exchange Commission (SEC) has granted Ripple a waiver that allows the company to once again raise funds privately.
Restoration of Funding Privileges
The SEC has provided Ripple with a waiver of its 'bad actor' disqualification, allowing the company to utilize the Rule 506 exemption of Regulation D. Ripple had previously been barred from using this exemption due to a permanent injunction by Judge Analisa Torres based on a violation of securities law.
Impact on Ripple's Fundraising Strategy
With the disqualification lifted, Ripple regains access to one of the fastest and least burdensome fundraising methods available. Accredited investors will now have the opportunity to participate in offerings without the need for public registration. This also removes a barrier that has existed for over five years due to the original injunction, opening new avenues for attracting large-scale private investments.
Conclusion
Ripple's reinstatement under Regulation D restores a critical financing option that had been unavailable due to the injunction. This change is expected to make private capital raising significantly easier for the company.
The SEC's lifting of the ban creates new opportunities for Ripple in the area of private fundraising, which could positively influence its ability to compete in the digital asset market.
