SEC Grants Ripple Regulatory Waiver, Lifting Fundraising Restrictions and Bad Actor Tag

09.08.2025 11:02

The U.S. Securities and Exchange Commission has granted Ripple Labs a waiver removing its "bad actor" designation, restoring the company's ability to raise private capital under Regulation D exemptions. This decision lifts a five-year fundraising restriction imposed after Judge Analisa Torres' 2023 ruling that found Ripple violated securities laws. Rule 506(d) had previously blocked Ripple from using private placement exemptions, forcing costly alternative fundraising routes.

The waiver allows Ripple to raise unlimited funds from accredited investors without SEC registration, significantly enhancing operational flexibility. "This relief restores an important tool for growth," stated official filings. The SEC included specific conditions in the approval, signaling case-by-case consideration for crypto disputes—a potential precedent for future enforcement resolutions.

Concurrently, multiple public companies disclosed XRP holdings: Quantum Biopharma Ltd added XRP alongside Ethereum and Bitcoin; Worksport Ltd holds XRP with approval for $5 million in purchases; Flora Growth Corp. and Hyperscale Data Inc. confirmed allocations. Ault Capital Group announced a $10 million XRP investment for settlement use, while VivoPower raised $121 million to establish a specialized XRP treasury—citing alignment with potential federal initiatives like Donald Trump's proposed Strategic Digital Asset Reserve.

Ripple CEO Brad Garlinghouse emphasized the waiver accelerates strategic goals, including pursuing a national bank charter and stablecoin initiatives. Attorney Bill Morgan noted it "unlocks institutional capital and boosts bank charter bid." An SEC spokesperson added the waiver will "streamline future fundraising efforts," reflecting evolving regulatory approaches to crypto compliance.