Things got tense between Ripple Labs and government officials this month as the latter are avoiding dialogue with the company, despite its important place within the crypto asset space. Recent actions (or lack thereof) by major authorities indicates a growing division between Ripple and political leaders in Washington.
Is Senator Lummis Ignoring Ripple’s XRP?
Ripple CEO Brad Garlinghouse, on May 19, revealed that a planned meeting with Senator Cynthia Lummis, chair of the Senate Digital Assets Subcommittee, was abruptly canceled and has yet to be rescheduled. “As a leader in Congress and Senator from one of the most crypto-friendly states (WY), I hope you will reconsider and be a leader for ALL of crypto,” Garlinghouse wrote on social media platform X, venting out his frustration.
He further extended a public invitation to Lummis for an open conversation either online or at upcoming events. Garlinghouse was in Washington to advocate for what he described as “sensible pro-crypto legislation” regarding stablecoins and overall market structure. However, the lack of response from Senator Lummis, who is scheduled to attend the Bitcoin 2025 conference next week, drew pointed criticism from industry figures.
Pro-XRP legal advocate Bill Morgan took to X to question the Senator’s priorities. “While several issuers actually issued stablecoins on the XRPL in the last few days, Bitcoin Maxi Senator Cynthia Lummis made this stunning contribution to the Bitcoin community,” he posted.
The comment exuded sarcasm as he added the screenshot of Lummis’ post with an image of her animated persona eating pizza in celebration of Bitcoin Pizza Day. It raised questions on whether Lummis is ignoring XRP on purpose. Nonetheless, an official response on the same is pending from her end as of yet.
SEC Commissioner Rejects Idea of Settlement
Meanwhile, the U.S. Securities and Exchange Commission’s internal division appears increasingly fractured over Ripple. On May 9, SEC Commissioner Caroline A. Crenshaw issued a strong dissent to the agency’s settlement agreement with Ripple Labs. The $125 million penalty levied on Ripple was offset by a return of $75 million in escrow funds and the removal of a previous injunction that restricted XRP sales.
“This is not a settlement I can support,” Crenshaw declared. She even warned that the deal “subverts the clear and honest application of the facts to the law.” She contended that the settlement dangerously weakens the SEC’s stance on digital asset enforcement.
Crenshaw’s statement cited three critical concerns: the undermining of judicial authority, the creation of a regulatory vacuum, and increased risk to investors. “The agreement raises both the civil penalty and the injunction,” she stated. Crenshaw warned it could allow Ripple to resume selling XRP without the legal clarity demanded by courts.
Now, questions arise about how crypto policy will unfold in the U.S., since the SEC’s Ripple case and political differences between industry leaders suggest changes are underway. For Ripple, and XRP holders, the silence from key Washington figures may speak louder than action.
Also Read: XRP Army Thrashes Zuckerberg Over Meta Buying Ripple Rumors
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