Ripple vs. SEC Lawsuit: The Latest Developments and Outcomes

The high-stakes legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has entered a pivotal stage. 

Magistrate Judge Sarah Netburn, overseeing the case, recently issued a new scheduling order focused on Ripple’s motion to exclude certain expert materials submitted by the SEC.  

This development stems from Ripple’s recent actions. The blockchain firm filed an opposition to the SEC’s opening brief on remedies. They are proposing to pay only $10 million in damages while asking the judge to reject other requests made by the commission. 

Alongside this opposition, Ripple filed a motion to strike expert materials introduced by the SEC’s top accountant, Andrea Fox.

Ripple’s Contention and SEC’s Response

According to Ripple’s motion, the SEC failed to provide Fox’s expert materials during the discovery phase of the remedies litigation. Instead, the commission submitted these materials simultaneously with its opening remedies brief, limiting Ripple’s ability to address the details adequately.

However, the commission opposed the crypto firm’s motion to strike Fox’s expert report. This disagreement led both parties to propose a new scheduling order to reach a resolution.

In the most recent update, Judge Netburn issued the scheduling order concerning Ripple’s motion to strike. The SEC has until April 29 to respond to Ripple’s motion. After that, Ripple will file its reply three business days later, on May 2, 2024.

Notably, Ripple’s reply will be submitted four days before the SEC files its reply to Ripple’s opposition to the remedies brief. The court’s decision on whether to strike Fox’s declaration could significantly influence the outcome of the remedies stage.

Fox’s expert report focuses on Ripple’s audited accounts and potential penalties for XRP’s institutional sales. Excluding this report might diminish the SEC’s chances of securing a substantial fine against Ripple.

Judge Netburn was nominated recently by President Joe Biden to serve as a federal judge in the U.S. District Court for the Southern District of New York (SDNY). 

This is the same court where Netburn has presided over multiple cases, including the Ripple lawsuit, as a magistrate judge.

Netburn’s nomination has garnered attention from crypto enthusiasts. Coinbase’s chief legal officer, Paul Grewal, has commended her for setting high standards in the industry. 

Notably, her role in the SEC vs. Ripple lawsuit has been significant. For instance, she once criticized the Securities and Exchange Commission for lacking what she called “faithful allegiance to the law.”

Additionally, she directed the regulatory commission to provide Ripple with drafts of William Hinman’s 2018 cryptocurrency speech. So, she has much experience in the Ripple lawsuit and understands the complexities surrounding cryptocurrencies

In her new role as a district judge, Netburn could oversee prominent cases related to the crypto sector, among others. This could prove invaluable in shaping future legal decisions in the industry.

As the Ripple vs SEC case continues to evolve, the crypto community remains vigilant. Everyone closely monitors the latest developments and their potential implications for XRP and the broader industry.

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