In the latest development of the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple, U.S. District Judge Analisa Torres has referred the case to Magistrate Judge Sarah Netburn for the next phase. This move, outlined in an amended order of reference, transfers the judicial oversight of the case to the Magistrate’s office.
The upcoming stage, known as general pretrial, typically involves discovery and a brief period to raise objections. It is considered the most opportune time for potential settlement discussions to take place. Notably, legal experts believe that the SEC is unlikely to appeal Judge Torres’ previous rulings, including her decision on July 13 that dismissed the allegation that Ripple violated the law by listing its XRP token on public exchanges. This ruling had significant implications for the crypto market, as it clarified that XRP is not classified as a security.
However, allegations remain against Ripple regarding the sale of XRP as a security through direct sales to investors using a marketing scheme. Judge Netburn, who has been involved in the case from the beginning and has previously weighed in on various motions, will oversee this phase. Speculation suggests that the SEC may be tempted to settle with Ripple during this period.
Notably, Judge Netburn made headlines earlier when she ordered the release of the “Hinman Documents.” These documents contained SEC files, including excerpts from a 2018 speech by director William Hinman. While the impact of their release may not have met the expectations of the cryptocurrency community, it did lead to a partial victory for Ripple and had a notable effect on overall cryptocurrency sentiment.
Given Judge Netburn’s history of challenging the SEC’s claims throughout the case and the positive sentiment surrounding Ripple’s recent developments, there is reason to believe that this positive momentum will continue. As of now, XRP is trading at $0.72, experiencing a 56% increase since July 13 but down from its recent peak.