Ripple Scores Another Win as SEC Waives “Bad Actor” Rule, Eases Fundraising Limits
Highlights
- The SEC has removed Ripple’s “bad actor” designation, restoring its ability to raise private capital under Regulation D exemptions.
- The waiver boosts Ripple’s financial flexibility, potentially aiding a future public listing and reducing legal and compliance costs.
- The decision signals the SEC’s willingness to evaluate crypto cases individually, potentially influencing other enforcement disputes.
Ripple (XRP) has secured another key victory in its regulatory clarity push. The U.S. Securities and Exchange Commission (SEC) has granted a waiver that removes the company’s “bad actor” designation. This change restores Ripple’s ability to raise private capital.
SEC Waiver Clears Major Fundraising Roadblock For Ripple
According to a recent filing, the SEC has lifted a five-year fundraising restriction that had barred Ripple from using certain exemptions under Regulation D. These exemptions allow companies to raise unlimited funds from accredited investors without the burdens of complete SEC registration. This is a crucial tool for startups and growth-stage firms.
Previously, Ripple was blocked from this pathway due to Rule 506(d), which disqualifies entities found to have violated securities laws. That designation was imposed following a ruling by Judge Analisa Torres. As a result, Ripple was left with more intricate and expensive fundraising options. Now that the waiver has completely removed that obstacle, the business can once more conduct exempt securities offerings.
According to the notice, the relief was granted under specific conditions and signals a willingness to evaluate crypto-related cases individually. This shift could influence how similar enforcement disputes are resolved in the future.
With the exemption restored, Ripple can more effectively reach accredited investors. Ahead of any upcoming public listing, this could be particularly beneficial. By cutting legal costs and shortening fundraising timelines, Ripple gains both agility and financial flexibility.
This development comes after the SEC and Ripple filed for a joint dismissal of their XRP Lawsuit appeal case . Crypto lawyer John Deaton also welcomed the good news.
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
Public Corporate Firms Already Banking on XRP
The waiver comes at a time when more publicly listed companies are adding XRP to their corporate treasuries. A number of businesses have already revealed their holdings in the token:
- Quantum Biopharma Ltd added XRP and Ethereum to its holdings alongside Bitcoin, Dogecoin, and Solana.
- Worksport Ltd holds both Bitcoin and XRP, having doubled its BTC holdings to curb inflation. The company’s Board has approved up to $5 million in Bitcoin and XRP purchases, capped at 10% of excess operational cash.
- Flora Growth Corp. and Hyperscale Data Inc. both revealed their XRP allocations, with Hyperscale’s subsidiary Ault Capital Group preparing to invest $10 million for cross-border settlement.
Meanwhile, VivoPower raised $121 million to finance the project, making it the first publicly traded company to create a specialized XRP treasury. The business also linked its intentions to XRP’s possible inclusion in Donald Trump’s proposed U.S. Strategic Digital Asset Reserve.
The company’s financial toolkit is strengthened by regaining access to Regulation D fundraising. Its larger strategic objectives, such as Ripple’s pursuit of a national bank charter, may be expedited by this action.
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