Ripple Gains SEC Nod: Fundraising Limits Lifted!
Ripple Scores Key Regulatory Win
Ripple (XRP) has achieved a significant victory in its pursuit of regulatory clarity. The U.S. Securities and Exchange Commission (SEC) has granted a waiver, effectively removing Ripple’s designation as a “bad actor.” This crucial change restores Ripple’s ability to raise private capital more freely.
SEC Waiver Removes Fundraising Roadblock
According to an official filing, the SEC has lifted a five-year restriction that previously prevented Ripple from utilizing certain exemptions under Regulation D. These exemptions are vital for companies seeking to raise funds from accredited investors without undergoing full SEC registration – a particularly important mechanism for startups and growing firms.
Previously, Rule 506(d) blocked Ripple from using this fundraising method because it disqualifies entities found to have violated securities laws, a designation stemming from a prior ruling. This forced Ripple to pursue more complex and expensive fundraising avenues. The waiver now eliminates this hurdle, allowing Ripple to once again conduct exempt securities offerings.
The SEC's notice indicates that this relief was granted under specific conditions, signaling a case-by-case evaluation approach to crypto-related disputes. This shift could influence how similar enforcement matters are handled in the future.
With this restored exemption, Ripple can more effectively engage accredited investors, which could be especially beneficial in anticipation of a potential public listing. This provides Ripple with greater agility and financial flexibility by reducing legal expenses and shortening fundraising timelines.
This development follows the joint filing by the SEC and Ripple to dismiss their XRP Lawsuit appeal case. Crypto lawyer John Deaton has also publicly welcomed the 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 Firms Investing in XRP
The waiver arrives as more publicly listed companies are incorporating XRP into their corporate treasuries. Several companies have disclosed their XRP holdings, including:
- Quantum Biopharma Ltd, which added XRP and Ethereum alongside Bitcoin, Dogecoin, and Solana.
- Worksport Ltd, which holds both Bitcoin and XRP, having doubled its BTC holdings to mitigate inflation. The company's Board has authorized up to $5 million in Bitcoin and XRP purchases, capped at 10% of excess operational cash.
- Flora Growth Corp. and Hyperscale Data Inc., both of which have revealed their XRP allocations. Hyperscale's subsidiary, Ault Capital Group, is preparing to invest $10 million for cross-border settlements.
- VivoPower raised $121 million to create an XRP treasury, becoming the first publicly traded company to do so. The business also tied its strategy to XRP’s potential inclusion in a U.S. Strategic Digital Asset Reserve.
Regaining access to Regulation D fundraising strengthens Ripple's financial capabilities. This action may expedite the company's broader strategic objectives, such as its pursuit of a national bank charter. This is welcome news for the company and the entire XRP community.