Another Big Win for XRP: SEC Makes Fresh Order In Favor of Ripple

The U.S. Securities and Exchange Commission has issued an order waiving the “bad actor” disqualification that arose from the permanent injunction against Ripple, a procedural change that eases regulatory constraint.

The decision comes shortly after both parties filed to dismiss their appeals, marking another step in winding down the long-running dispute.

Morgan also explained that this decision will help the company raise capital, confirming that “Ripple is no longer barred from conducting exempt securities offerings.” The move by the SEC will also aid Ripple’s broader business objectives, including its application for a national trust bank charter to form the Ripple National Trust Bank (RNTB).

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The Bad Actor Disqualification

The bad actor disqualification originates in Rule 506(d) of Regulation D, which disqualifies issuers from relying on certain private-offering exemptions when specific enforcement events have occurred. The consequence of such a designation is that an issuer must either seek a waiver or pursue registered offerings, a process that is more time-consuming and costly.

Why This Matters For XRP

With the disqualification removed, Ripple once again has access to Regulation D private-placement options for accredited investors. This change removes a specific regulatory hurdle and eases some compliance requirements for raising funds privately.

Morgan noted that the waiver will help Ripple raise capital and lift the previous ban on exempt securities offerings. Restored access to Rule 506 can speed up fundraising and give Ripple more flexibility in arranging private investments to support product development, manage liquidity, and build commercial partnerships involving XRP.

Although Judge Torres denied the joint motion that would have lifted the permanent injunction placed on Ripple, this relief could help XRP by aiding the company’s broader strategic goals and initiatives that depend on institutional counterparties.

For XRP holders, the waiver removes one source of regulatory friction, even though the permanent injunction remains on the record. Whether this targeted relief produces material strategic shifts for Ripple or significant market effects for XRP will depend on the company’s subsequent financing choices and on how regulators and counterparties respond.

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