- SEC waiver lifts Ripple’s Bad Actor status, restoring private capital-raising rights.
- Ripple can now raise funds through Regulation D, reducing legal costs.
- The waiver boosts Ripple’s ability to attract accredited investors for growth.
- Ripple’s financial flexibility improves ahead of potential public listing.
Ripple has secured a notable victory in its ongoing regulatory battle with the U.S. Securities and Exchange Commission (SEC). The SEC recently granted a waiver lifting the “Bad Actor” designation previously imposed on Ripple, allowing the company to raise private capital more easily. This change removes key fundraising restrictions under Regulation D exemptions, which could help Ripple expand its financial flexibility and support its long-term goals.
SEC Removes Restrictions, Boosting Ripple’s Fundraising Potential
The SEC’s recent decision to lift the “Bad Actor” designation marks an important shift in Ripple’s ability to fundraise. Under the previous rules, Ripple was unable to use certain exemptions under Regulation D, which allowed companies to raise capital from accredited investors without the full burden of SEC registration.
The “Bad Actor” designation had restricted Ripple from utilizing this exemption due to the company’s ongoing legal battle concerning its cryptocurrency, XRP. The waiver now restores Ripple’s ability to seek private investment, a critical tool for business growth.
What this means: @Ripple can continue to raise money in the private markets. One might even argue, it’s business as usual – as if the lawsuit against Ripple and the $125M fine never happened. https://t.co/qVZWoYQ44n
— John E Deaton (@JohnEDeaton1) August 8, 2025
This change allows Ripple to engage more freely with accredited investors, enabling the company to raise funds more efficiently. Ripple had previously faced the challenge of navigating more complicated and costly fundraising avenues due to the restrictions placed on it. With this latest development, Ripple’s fundraising options become more accessible, potentially benefiting its financial standing as it prepares for future growth or a public listing.
Impact on Ripple’s Financial Flexibility
The waiver provides Ripple with more flexibility in managing its finances, especially in relation to raising private capital. By removing the restrictions on Regulation D, the company can now engage in private securities offerings without having to meet the complex requirements of SEC registration.
This significantly lowers the legal and compliance costs associated with raising funds and shortens the time needed to complete such offerings.
Additionally, the financial agility Ripple gains could support its broader strategic goals, including the potential for an eventual public listing. The company may now be in a stronger position to attract investors, which could facilitate its expansion and long-term business objectives.
The shift in policy also signals that the SEC is willing to evaluate crypto-related cases on an individual basis, which may set a precedent for other cryptocurrency companies facing similar regulatory challenges.
Ripple’s Path Forward and Regulatory Landscape
With the lifting of the “Bad Actor” designation, Ripple’s position has improved not only for private fundraising but also in its broader legal strategy. The company has been involved in an ongoing lawsuit with the SEC over the status of its cryptocurrency, XRP.
While the SEC and Ripple have recently filed a joint dismissal request for their appeal in the case, the new waiver adds another layer of flexibility for Ripple as it navigates the regulatory landscape.
This regulatory shift could have broader implications for the crypto industry. It suggests that the SEC may take a more tailored approach in evaluating individual cases involving digital assets.
The decision may encourage other crypto companies to pursue similar reliefs, which could alter how the SEC handles crypto-related enforcement disputes in the future. As the regulatory environment for cryptocurrencies continues to evolve, Ripple’s latest victory could help shape the path forward for the entire industry.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
