TLDR
- SEC grants Ripple a waiver removing its “bad actor” disqualification under Rule 506(d).
- Ripple regains access to Regulation D exemptions for private fundraising.
- The change allows XRP to raise unlimited capital from accredited investors without SEC registration.
- Ripple had lost this fundraising path after a permanent injunction from Judge Analisa Torres.
- The waiver eliminates a five-year fundraising restriction on the company.
The U.S. Securities and Exchange Commission has granted Ripple (XRP) a waiver lifting its “bad actor” disqualification under Rule 506(d). This decision restores Ripple’s access to a critical Regulation D fundraising exemption. Consequently, the company can now raise unlimited capital from accredited investors without SEC registration.
Rule 506(d) Disqualification Lifted
Rule 506(d) automatically disqualifies companies that violate securities laws from using certain fundraising exemptions. Ripple had received this designation after a permanent injunction by Judge Analisa Torres. As a result, XRP lost the simplest and fastest fundraising route for five years.
However, the SEC’s waiver removes that restriction entirely. XRP may now conduct private offerings without the burdens of full SEC registration. “The waiver will help streamline future fundraising efforts,” an SEC spokesperson confirmed in the notice.
Impact on Ripple Fundraising Path
This change significantly improves XRP ’s ability to secure capital before any public listing. Startups often rely on Rule 506 exemptions to reduce legal costs and shorten fundraising timelines. XRP can now employ the same approach to strengthen its financial position.
Moreover, the restored exemption allows XRP to reach accredited investors more efficiently. It also eliminates a key fundraising hurdle imposed by the injunction. Therefore, Ripple gains both flexibility and speed in future private capital raises.
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Source: https://blockonomi.com/ripple-regains-rule-506-access-after-sec-removes-bad-actor-label/