Judge Analisa Torres Refers Ripple VS. SEC Case to Magistrate

Last Monday was the release of the ruling of US District Judge Torres regarding the Ripple Labs vs. US SEC, in which she ruled that XRP wasn't a security when sold to retail users via crypto exchanges.

However, she referred both parties to Magistrate Sarah Netburn for the next phase of the case.Fox Business journalist Eleanor Terret reported this news on Monday.

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

According to Terrett's report, Judge Torres transferred jurisdiction responsibility of specific parts of the suit to her colleague, Magistrate Netburn.

Magistrate Netburn to Oversee General Pretrial of Ripple vs. US SEC

The single-page document shows that Netburn will have oversight access to the suit's General pretrial, which will be the next phase of the case.

Notably, General Pretrial refers to a hearing ahead of a main trial. In this phase, defendants' and plaintiffs' lawyers must determine the facts, laws, and issues before the court trial.

In this stage, there will be scheduling, discovery, non-dispositive pretrial motions, and, eventually, settlement proceedings.Many pundits believe that the chances of the SEC filing an appeal to last week's rulings by Judge Analisa Torres are slim.

In the meantime, there have been a lot of opinions regarding Judge Torres's previous ruling that XRP tokens only constituted security when sold to institutional traders or investors.

This view of the XRP token, as pointed out by the United States Securities and Exchanges Commission (SEC), could result in investors viewing it as a security.

Netburn Orders Both Parties to Agree on Settlement Conference Dates

It is worth highlighting that Magistrate Netburn has already ordered the US SEC and Ripple Labs to choose three dates for a probable settlement conference if necessary.

Because of their busy schedule, the court ordered both parties to select the settlement date between six and eight weeks ahead.

Following Judge Torres's referencing of the General Pretrial of the Ripple vs. SEC suit to Netburn, XRP community members expressed enthusiasm that the pretrial stage will favor the blockchain giant.

Interestingly, Magistrate Netburn has been active in the suit since its original stage. In previous cases, Netburn has been known to rule in favor of the blockchain giant Ripple against the United States Securities and Exchanges Commission (SEC).

On July 12, 2022, Netburn ordered the Securities and Exchange Commission to surrender the heavily debated Hinman's 2018 documents.

Along with condemning the regulator's litigation strategies utilized in the court battle over Hinman records, the judge also charged the SEC with hypocrisy.

She further noted that the SEC only accepts litigation stances to advance its desires and not out of a committed allegiance to the law.Due to her history in the lawsuit, several XRP pundits believe she will continue to make judgments in Ripple's favor based on the case's facts.

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