A crypto-skeptical commissioner at the US Securities and Exchange Commission has criticized her agency’s settlement letter that could potentially conclude the Ripple legal saga. The SEC and Ripple submitted a joint settlement letter requesting the dissolution of the August 2024 injunction against Ripple and the return of $75 million of the $125 million in civil penalties held in escrow. SEC Commissioner Caroline Crenshaw expressed her disapproval of the impending deal, stating that it could impair the regulators’ ability to enforce compliance among crypto firms and undermine the court’s decision. The settlement has raised concerns about a regulatory vacuum until a crypto task force establishes a regulatory framework. The SEC’s shift in approach towards crypto firms under the Trump administration has been evident in the dismissal of enforcement actions. Despite the agreement between the SEC and Ripple, former federal prosecutor James Filan highlights that several steps need to be taken before the legal proceedings conclude. The next phase involves Judge Torres providing an indicative ruling, followed by a request for a limited remand to Judge Torres by the Second Circuit Court of Appeals, ultimately leading to the settlement motion. Once the injunction is dissolved, and the funds are distributed, the SEC and Ripple will seek the dismissal of the appeals. The SEC initiated legal action against Ripple Labs in December 2020, alleging the illegal sale of its token as an unregistered security. This ongoing development in the Ripple case signifies a pivotal moment in the crypto regulatory landscape, with implications for investor protection and market integrity in the US.