Ex-SEC Lawyer Explains What SEC's Recent Waiver Means for Ripple and XRP

Marc Fagel, a former lawyer in the U.S. Securities and Exchange Commission (SEC), has offered a focused legal interpretation of the commission’s recent administrative waiver for Ripple and XRP. He argued that the waiver produces concrete operational consequences for the court injunction that followed the agency’s enforcement action.

In his post, he explained that the permanent injunction prevents Ripple from violating securities laws. However, if the laws are changed, future sales without registration would not violate the law or the injunction. He noted that “Ripple was found to have violated the law as it existed at the time of its misconduct.”

Fagel explained that this scenario, where the law is changed, would “render the injunction largely moot.” He also says that the SEC’s recent waiver has the same effect.

Immediate Regulatory Effect

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The waiver removes a regulatory disqualification that had prevented Ripple from relying on a key exemption under Regulation D. With that barrier removed, Ripple can pursue private capital from accredited investors without submitting to full SEC registration where the exemption applies.

The administrative relief, therefore, reduces a discrete compliance obligation tied to the injunction and restores a practical route for capital formation and corporate funding.

Impact on Ripple’s Operations and Legal Standing

While the waiver does not erase the court’s finding that Ripple violated securities laws in its past institutional sales of XRP, it has significant implications for the company’s ability to operate. For Ripple, the development arrives at a time when it is seeking to expand both its product suite and its geographic footprint using XRP. Access to capital under less restrictive conditions could accelerate those ambitions.

By reinstating access to Regulation D exemptions, the company can once again raise funds through private offerings, which could support expansion plans, product development, and potential strategic acquisitions.

Legal Clarity for Ripple and XRP

Fagel’s interpretation also clarifies that the injunction remains in place for as long as the underlying law remains unchanged. However, in practice, the waiver neutralizes a key operational restriction. The company can now engage in certain transactions that were previously off-limits without risking a violation of the injunction.

The SEC’s decision to grant relief to Ripple after the prolonged lawsuit shows the pro-crypto stance of the current administration and marks the end of the war on crypto that lasted for years.

The legal battle between Ripple and the SEC is now over, and for XRP holders and market participants, the decision further reduces legal uncertainty around Ripple’s future activities.

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