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A high-ranking official in the U.S. Securities and Exchange Commission (SEC) has taken a strong stance against a recent settlement between the agency and Ripple Labs.

Commissioner Caroline A. Crenshaw filed an official dissent statement on May 8 to Judge Torres. In the statement she claims that the Ripple-SEC settlement deal undermines the authority of the court. Crenshaw believes that a settlement plea would show that the SEC is receding.

The commissioner also warned that the SEC’s eagerness to abandon fines would send a troubling message to the crypto sector. This would lead companies to believe that violating securities laws will not result in significant penalties, potentially encouraging more misconduct.

On April 8, a proposed settlement between Ripple and the SEC was filed in the U.S. District Court as an indication that a legal conclusion was at hand. Under the settlement, Ripple would have paid $50 million to the SEC, and the remaining funds held in escrow — about $75 million — would have been returned to the company. The settlement still requires court approval to become final.

In 2020, the SEC sued Ripple, arguing that it was selling their token, XRP, without a registered security status. The court partially agreed, ruling that Ripple violated the law when selling XRP to institutional investors, but not when selling it on exchanges. The court ordered Ripple to stop breaking the law against selling securities and issued a $125 million fine.

The SEC has been looking to create new, crypto-specific rules, especially after SEC Chair Paul Atkins took office. However, no definitive framework currently exists.