The U.S. Securities and Exchange Commission (SEC) has granted Ripple an unprecedented waiver permitting private securities sales to investors, directly contradicting prior rulings by Judge Torres in the XRP lawsuit. This regulatory exception, issued last Friday alongside a joint motion to dismiss the multi-year SEC vs Ripple lawsuit, marks a pivotal resolution to the legal battle while igniting debates over regulatory consistency.
Former SEC official Marc Fagel characterized the waiver as "unprecedented and arguably lawless", noting it effectively bypasses judicial decisions that previously restricted Ripple's securities offerings. The SEC's order stated: "In light of the facts and circumstances... good cause exists for granting Ripple exemption from disqualification provisions." This enables immediate private securities sales despite ongoing concerns about procedural legitimacy.
The dismissal of the lawsuit removes legal uncertainty that has shadowed Ripple and XRP for years, potentially offering partial regulatory clarity. However, the waiver introduces new complexities regarding XRP's classification, as it permits securities transactions while sidestepping established court determinations. Legal experts highlight no clear mechanism to challenge the waiver unless investors suffer demonstrable losses.
Short-term implications include a new revenue stream for Ripple to fund growth initiatives, while long-term concerns center on regulatory precedent. Critics argue this undermines judicial authority and creates uneven standards for crypto projects, intensifying scrutiny of SEC's neutrality in digital asset governance.