According to a report by Fox Business, the U.S. Securities and Exchange Commission (SEC) must decide by October 7th whether to challenge a July 2023 ruling by U.S. District Judge Analisa Torres. The ruling determined that only a portion of Ripple's XRP cryptocurrency sales violated securities law, a decision that has been met with criticism from securities lawyers and other federal judges.

This ruling is considered a significant legal victory for the nascent crypto industry, as it attempts to prove that this emerging asset class isn't as inherently violative of U.S. securities laws as the SEC believes. It also serves as a cornerstone for legal strategies of other crypto entities like trading platforms Coinbase, Binance, and Kraken, currently facing lawsuits from the agency for allegedly selling unregistered securities.

Former SEC enforcement lawyer Marc Powers, in an interview with Fox Business, suggested the SEC is likely to appeal, as the agency and its cryptocurrency-skeptic chair Gary Gensler are determined to assert their jurisdiction over this $2 trillion industry.

Fox Business noted that disclosure is the cornerstone of U.S. securities law. When a company sells shares to raise funds and expand its operations, it must undertake significant filings that provide investors with the information they need to decide whether to buy shares. However, some legal experts argued that Judge Analisa Torres's ruling undermines this disclosure requirement.