ChainCatcher reported that according to foxbusiness, the U.S. Securities and Exchange Commission must decide by October 7 whether to challenge the ruling made by U.S. District Judge Analisa Torres in July 2023, which held that only part of Ripple's sales of XRP crypto tokens violated securities laws. This ruling has drawn criticism from securities lawyers and other federal judges.
The ruling is seen as a major legal victory for the still-nascent crypto industry as it seeks to prove that the emerging asset class does not violate U.S. securities laws as the SEC believes. It also became a cornerstone of the legal strategy of 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 told Fox Business that the SEC is likely to appeal because the agency and its crypto-skeptic chairman Gary Gensler are determined to assert jurisdiction over the $2 trillion industry.
FoxBusiness said that information disclosure is the cornerstone of U.S. securities law. When a company sells stock to raise funds and expand its business, it must make a lot of filings to provide investors with the information they need to decide whether to buy the stock. And some legal experts said that Judge Analisa Torres' ruling overturned this disclosure requirement.
