Magistrate Judge Sarah Netburn, who is presiding over the Ripple vs SEC case, was nominated for District Judge by Joe Biden.
Magistrate Judge Sarah Netburn has been nominated as the District Judge at the Southern District of New York.
Ripple vs. SEC is the case under her current presiding authority. Ripple Labs may benefit from this development, as she has established a pro-cryptocurrency stance and rendered impartial decisions.
At this time, Judge Sarah Netburn has not decided regarding Ripple’s appeal of the SEC’s astronomical civil penalty.
The blockchain payments company lodged a rebuttal and insisted that damages should not exceed $10 million.
Furthermore, Ripple provided several counterarguments to the SEC’s assertions.
Will Ripple Benefit From Judge Netburn’s Appointment?
Ripple denied the SEC’s request for disgorgement of $876,308,712 and prejudgment interest of $198,150,940 earlier this week.
In opposition, Ripple is prepared to concede to a maximum penalty of $10 million, thereby contesting the penalties proposed by the SEC.
On April 22, Ripple submitted a filing contesting the arguments and penalties levied by the SEC.
However, the company consented to civil penalties after the court determined that it had contravened Section 5 of the Securities Act of 1933 by offering XRP via institutional investment contracts.
In its opposition, Ripple put forth three primary arguments.
The SEC initially failed to establish a probable occurrence of subsequent violations concerning Ripple’s institutional sales.
Furthermore, by the SEC’s inability to establish monetary damage, the Govil case precedent precludes disgorgement; therefore, Ripple may deduct its lawful business expenses.
In addition, the firm contended that the civil penalty should not surpass $10 million, referencing feeble arguments and monetary sanctions imposed by the SEC in prior digital asset cases.
In addition, Ripple disclosed modifications to its XRP sales procedures to the court.
This entails procuring licenses for international sales and amending contracts to rectify concerns.
The SEC anticipates submitting a brief reply under seal by May 6.
Meanwhile, opposition letters and letter motions concerning the withholding of filing details are due by May 20 from all parties and third parties.
Ripple’s arguments appear to be sound, and the magistrate will likely rule in its favor.
The SEC will suffer a significant loss if Judge Sarah Netburn makes such a decision before her tenure as a district judge.
If the regulatory agency were to initiate an appeal of the judgment, it is improbable that Judge Netburn would vacate her ruling.
Coinbase CLO Applauds Judge Netburn
Coinbase CLO Paul Grewal praised the most recent nomination for the district judge position by Magistrate Judge Sarah Netburn.
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.”
Moreover, he disclosed the measures the magistrate took overseeing the Ripple case concerning cryptocurrencies and the 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.”
Additionally, pro-XRP lawyer Bill Morgan stated that her nomination was merited as she rendered impartial decisions 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.”