SEC v. Ripple Case Referred to Magistrate Judge Sarah Netburn, Who Ordered ‘Hinman Documents’ Release
Remaining questions in the legal battle between Ripple and the US Securities and Exchange Commission (SEC) have been referred to Magistrate Judge Sarah Netburn, the judge who ordered the release of the so-called ‘Hinman documents.’
Magistrate Judge Netburn will now take care of general pretrial procedures, which includes scheduling, discovery, as well as pre-trial motions and a possible settlement, Fox Business journalist Eleanor Terrett wrote on Twitter.
🚨NEW: District Judge Torres has referred the @Ripple case to Magistrate Judge Netburn for General Pretrial (includes scheduling, discovery, non-dispositive pre-trial motions and settlement). 👇🏼 pic.twitter.com/EyrA3flpXC— Eleanor Terrett (@EleanorTerrett) July 17, 2023
The transfer of the case to the magistrate’s office marks the next phase in the lengthy legal battle Ripple has been through with the SEC.
Last week, a US District Court ruled that the XRP token is “not in and of itself” a security for regulatory purposes, potentially settling the key issue of the case.
The ruling led to a strong rally for XRP, pushing it up by more than 70% in just one day.
Judge behind Hinman document release
An interesting twist in today’s news is that the judge that is now taking on the remaining issues in the Ripple case is the same judge that ordered the unsealing of the Hinman documents in June.
Additionally, Judge Netburn also has a history of challenging the SEC on other fronts, including calling out “hypocrisy” over a lack of “faithful allegiance to the law” from the regulator.
The Hinman documents are a set of emails and speeches by William Hinman, a former director of the SEC’s Division of Corporation Finance, that are seen as positive for Ripple’s defense in the case.
Full document 👇🏼https://t.co/AWFED2zUmo?— Eleanor Terrett (@EleanorTerrett) June 13, 2023
The release of the documents did perhaps not have the full effect that the most pro-Ripple members of the crypto community had hoped for, although it likely contributed to Ripple’s partial win in the latest court ruling.