The U.S. Securities and Exchange Commission (SEC) is facing a looming deadline to decide whether to appeal a landmark ruling in the Ripple case. According to Fox Business, the agency must make its decision by October 7.
SEC Likely to Appeal in Ripple Case
The July 2023 ruling by U.S. District Judge Analisa Torres found that only a portion of Ripple’s sales of XRP crypto tokens violated securities laws. This decision has been met with mixed reactions, with some legal experts praising it as a victory for the crypto industry while others criticizing it for undermining traditional securities law principles.
The case has significant implications for the broader crypto market. If the SEC decides to appeal, it could set the stage for a lengthy legal battle that could further define the regulatory landscape for cryptocurrencies in the United States.
Former SEC enforcement attorney ARC Powers told Fox Business that the agency is likely to appeal to the Ripple case, citing the SEC’s determination to assert jurisdiction over the $2 trillion crypto industry.
One of the key issues at the heart of the case is the disclosure requirements for crypto tokens. Traditional securities law requires companies to provide investors with detailed information about their businesses before selling stock. Judge Torres’ ruling, however, suggested that these disclosure requirements may not be as applicable to crypto tokens.
