The U.S. Securities and Exchange Commission has filed a motion seeking court approval for a settlement with Ripple Labs, despite internal criticism regarding investor protection.
Proposed Settlement Between SEC and Ripple
On May 8, the SEC filed court documents indicating that both parties agree to withdraw their appeals. This settlement could bring an end to the legal battle that began in December 2020. Ripple would be allowed to resume sales of XRP and recover $75 million of the $125 million held in escrow.
Criticism of the Settlement from SEC
SEC Commissioner Caroline A. Crenshaw criticized the settlement as 'a tremendous disservice to the investing public.' She voiced concerns that it weakens the SEC's ability to hold crypto companies accountable and may reduce investor protection.
Prospects After the Settlement
If the court approves the motion, Ripple and the SEC will officially dismiss their appeals, concluding one of the most notable cases in the crypto industry. However, Crenshaw's criticism may spark new discussions about the future regulation of digital assets.
The potential settlement between the SEC and Ripple Labs closes one of the largest legal battles in the crypto industry, although the resulting debates highlight the complexity of regulating digital assets.
