SEC Commissioner Caroline Crenshaw criticized the agency's recent $50 million settlement with Ripple Labs as detrimental to investor protections and a regression in crypto enforcement. The settlement resolves claims that Ripple illegally raised capital through unregistered XRP token sales, significantly decreasing penalties from an originally sought $2 billion. Crenshaw argued this agreement undermines the legal principles previously upheld and suggests that the SEC is retreating from its established stances, especially as it has dropped multiple crypto cases since Trump returned to office. This shift has ignited internal tensions within the SEC regarding its evolving approach towards cryptocurrency regulation. Crenshaw emphasized that the diluted settlement not only erases hard-won legal victories but also potentially damages the SEC's credibility amid an uncertain regulatory landscape.

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