US SEC may appeal Ripple ruling by Oct. 7

The SEC has until October 7 to decide whether to challenge U.S. District Judge Analisa Torres' July 2023 ruling that Ripple's sale of only a portion of its XRP crypto token violated securities laws, a ruling that drew criticism from securities lawyers and other federal judges, foxbusiness reported.

The ruling was seen as a major legal victory for the fledgling crypto industry, as it sought to prove that the nascent asset class did not violate U.S. securities laws, as the SEC had argued. It also serves as a cornerstone of the legal strategy for other crypto entities, such as trading platforms Coinbase, Binance and Kraken, which are currently being sued by the commission for allegedly selling unregistered securities.

Former SEC enforcement attorney arc Powers said in an interview with Fox Business that the SEC is likely to appeal as the agency and its cryptocurrency skeptic chairman Gary Gensler are determined to exercise jurisdiction over the $2 trillion industry.

Disclosure is a cornerstone of U.S. securities law, foxbusiness said. When a company sells stock to raise money and expand its business, it must make extensive filings to provide investors with the information they need to determine whether to buy shares. And some legal experts say Judge Analisa Torres' ruling subverts that disclosure requirement.