SEC Commissioner Caroline Crenshaw has criticized the proposed settlement with Ripple, stating it could undermine investor protections and damage the SEC's credibility in court. She described the settlement as potentially creating a ‘regulatory vacuum’ until a formal regulatory framework is established. Crenshaw highlighted concerns that the settlement would erase previous court victories in protecting investors and represent a departure from consistent legal positions. The settlement aims to dissolve an August 2024 injunction against Ripple, allowing the return of funds held in escrow, but Crenshaw argues that it raises more questions than answers. Despite the joint settlement request submitted to the New York court, legal experts note that several steps still must be taken before the agreement is finalized, including an indicative ruling from Judge Torres. The SEC had originally accused Ripple of illegally selling its token, XRP, as an unregistered security. The situation remains ongoing as developments unfold with Ripple and regulatory implications continue to be debated.

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