Pro-Crypto Sarah Netburn Gets Nominated As District Judge, Good News For Ripple?
Magistrate Judge Sarah Netburn has been nominated as the District Judge at the Southern District of New York. She is currently presiding over the Ripple vs SEC case. This development could be a boon for Ripple Labs as she has determined her pro-crypto stance and offered fair rulings.
Currently, Judge Sarah Netburn is yet to decide on Ripple’s against the SEC’s exorbitant civil penalty. The blockchain payments firm filed an opposition and claimed that only $10 million should be paid in damages. Moreover, Ripple cited several arguments that contradict the SEC’s claims.
Will Ripple Benefit From Judge Netburn’s Appointment?
Earlier this week, Ripple rejected the SEC’s request for $876,308,712 in disgorgement and $198,150,940 in prejudgment interest. Instead, Ripple is willing to pay a maximum penalty of $10 million, challenging the SEC’s proposed penalties. In a filing on April 22, Ripple contested the SEC’s arguments and fines. However, it agreed to pay civil penalties after the court found the company in violation of Section 5 of the Securities Act of 1933 for offering XRP through institutional investment contracts.
Ripple presented three main arguments in its opposition. Firstly, the SEC failed to demonstrate a likelihood of future violations in Ripple’s institutional sales. Secondly, the Govil case precedent precludes disgorgement since the SEC cannot prove pecuniary harm, and Ripple’s legitimate business expenses should be deducted.
In addition, the firm asserted that the civil penalty should not exceed $10 million, citing weak arguments and fines in other digital asset cases by the SEC. Moreover, Ripple informed the court of changes in its XRP sales practices. This includes obtaining licenses for sales outside the U.S., and revising contracts to address concerns.
The SEC is expected to file its reply brief under seal by May 6. Meanwhile, parties and third parties have until May 20 to submit letter motions and opposition regarding the sealing of details in the filings.
Ripple’s arguments seem valid and there’s a good chance that the judge rules in its favor. If Judge Sarah Netburn passes such a ruling before her appointment as the District Judge, the SEC will be in for a major loss. In case the regulatory agency decides to appeal the ruling, Judge Netburn is highly unlikely to reverse her decision.
Also Read: Pro-XRP Lawyer Slams Judge Torres’ Interpretation Of ODL Sales
Coinbase CLO Hails Judge Netburn
Coinbase CLO Paul Grewal hailed Magistrate Judge Sarah Netburn’s latest nomination for the District Judge position. In a post on X, Grewal wrote, “Congratulations to SDNY U.S. Magistrate Judge Sarah Netburn on her nomination to serve as a U.S. District Judge on that same court.”
In addition, he revealed the initiatives undertaken by the Ripple case’s judge toward crypto and law. The Coinbase CLO stated, “She has put on a master class for crypto and others on why talented judges matter so much to the administration of justice.”
Furthermore, Bill Morgan, a pro-XRP lawyer, also noted that her nomination was well-deserved as she has provided fair rulings in the Ripple vs SEC case. He wrote, “Her decisions in the SEC v Ripple case and dealing with such a difficult litigant like the SEC shows her appointment is thoroughly warranted and deserved.”
Also Read: XRP Price Prediction: How Surging Whale Activity Could Blast XRP To $1 In May
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