The next phase of the SEC v. Ripple case is set to proceed, as US District Court Judge Analisa Torres has filed papers to transfer the case to Magistrate Judge Sarah Netburn. This move suggests that the case will now enter a general pre-trial phase , which typically involves discovery and objections. During this stage, there is a higher likelihood of a settlement being reached.
Judge Torres previously ruled on July 13, dismissing Ripple's claim that issuing XRP was illegal, effectively stating that XRP is not a security. However, the remaining allegation is that Ripple sold XRP as a security to investors through a marketing plan that emphasized certain aspects of XRP, potentially leading investors to perceive it as a security.
Magistrate Judge Netburn will oversee the next phase of the case, and there is speculation that the SEC may be open to settling the matter. Judge Netburn has been involved in various motions throughout the trial and previously ordered the release of the "Hinman Files," which included the text of a 2018 speech by former SEC Commissioner William Hinman. These files are seen as significant evidence in the case. Ripple's partial victory in the ruling has had a significant impact on the overall sentiment in the cryptocurrency community.
Given Judge Netburn's previous challenges to the SEC's claims and the positive sentiment stemming from Ripple's partial victory, expectations are that the positive sentiment will continue. As of now, XRP is trading at $0.72, slightly down from its peak but still up over 56% since July 13.
