Trumps crypto-friendly SEC hands reprieve to one of S.F.s biggest political donors

Ripple Labs and founder Chris Larsen settled with the SEC for $125 million, a substantial reduction from a potential $2 billion fine following a lengthy legal battle. Larsen criticized the SEC's initial case, claiming it aimed to harm the cryptocurrency industry at a time of regulatory confusion. He emphasized that the ruling signals a positive shift for the cryptocurrency sector and the San Francisco Bay Area, which was once its capital. The SEC initiated its lawsuit against Ripple in 2020, alleging that the company failed to register its cryptocurrency, XRP, as a security. A 2023 ruling partially favored Ripple, stating that XRP sales to individuals do not need to be treated as securities, while institutional sales do.

Following this decision, the SEC appealed, labeling Ripple's conduct as egregious. Ripple's legal team capitalized on a more favorable political environment, which some legal experts attribute to the case's favorable outcome. This settlement allows Ripple to pursue further acquisitions, signaling a renewed confidence in the company's future.