Ripple wins big wins when lifting the “bad actor” ban

Ripple won a big victory after the US Securities and Exchange Commission (SEC) officially abandoned the disqualification of “bad actors.” This decision will restore Ripple’s ability to implement exempt securities offerings under Regulation D, providing access to one of the fastest and most cost-effective ways to raise capital from accredited investors without undergoing a full SEC registration.

The exemption lifts the five-year funding restrictions imposed in 2024, following Ripple’s permanent injunction in its famous legal battle with the SEC. In the case of Ripple, this opens up a key funding channel as you pursue strategic milestones, including the National Bank Charter.

Long-lasting effects from Ripple’s SEC case

The disqualification stemmed from the decision of Judge Annalisa Torres, which caused the limitations of Rule 506(d). Under this rule, companies were found to be violating certain securities laws, losing access to streamlined funding options for years, creating a significant barrier to the growth of companies like Ripple.

The injunction remains in place, but points confirmed by legal experts Bill Morganespecially given the previous resistance by regulators to grant such relief, the SEC’s decision to lift the donation ban is celebrated as a practical victory.

Bill Morgan: “Revolution”

Morgan welcomed the move as “another victory for Ripple,” emphasising unlocking the institutional capital flow without delays and costs that led to full registration. This, he noted, will help Ripple attract key investors, secure strategic partnerships and strengthen its presence in traditional finance.

He also emphasized that removing the “bad actor” label could soften Ripple’s path to the National Bank Charter, potentially removing one of the biggest objections facing the application process.

Strategic impact beyond funding

Industry voices, including X-user PeterB, see this as more than just an opportunity to raise capital. The exemption coincides with Ripple’s July 2025 Bank Charter application and can support broader ambitions, such as launching RLUSD Stablecoin and pursuing a Master Federal Reserve account.

However, the potential impact on XRP ETFs remains uncertain until further regulatory clarity emerges.

This is why it’s important for Ripple’s future

By regaining Regulation D privileges, Ripple is now able to raise unlimited funds from certified investors. This is a funding channel that startups and fintech companies often use to expand quickly. This restored flexibility can drive expansion, product innovation and global growth without dragging on expanded legal processes.

In an industry where regulatory obstacles can stop innovation, the SEC exemption gives Ripple an unusual boost, rebuilds momentum and places it intensifying its foothold in both the crypto market and the traditional financial system.