While Judge Netburn has not yet made a ruling on Ripple's recent objections, the company has contested the SEC's claims and its proposed hefty fines. Ripple has objected to paying fines exceeding $10 million and has raised several arguments contradicting the SEC's allegations.
Earlier this week, Ripple rejected the SEC's demands for $876,308,712 in disgorgement and $198,150,940 in prejudgment interest. Instead, Ripple is willing to pay a maximum of $10 million in fines, questioning the SEC's penalties. In a filing submitted on April 22, Ripple raised objections to the SEC's arguments and fines.
Ripple has presented three main arguments in its opposition. Firstly, the SEC has failed to prove that institutional sales by Ripple could lead to potential violations in the future. Secondly, Ripple has cited a precedent case to argue against illegal gains and to deduct legitimate business expenses, as the SEC could not prove economic losses. Additionally, the company has claimed that civil penalties should not exceed $10 million, bringing into question the SEC's arguments and fines in other digital asset cases.
Ripple's arguments seem to be effective, and Judge Netburn is likely to make a ruling in its favor. This could result in significant losses for the SEC if it decides to appeal the ruling, as it is unlikely that Judge Netburn would overturn her decision. Therefore, the nomination of Sarah Netburn as a district judge could indeed be good news for Ripple.
