The U.S. Securities and Exchange Commission (SEC) has been granted an extension to submit a disclosure schedule relating to individual defendants Brad Garlinghouse (CEO) and Chris Larsen (co-founder) in the case against Ripple Labs.
The bitter legal dispute has been ongoing since late December 2020, after the SEC said Ripple Labs received $1.3 billion from an unregistered security offering with its XRP token. The firm denies that XRP is a security, but instead is an international payment method, and alleges that the SEC did not notify Ripple that its token is a security.
While the decision in favor of the SEC in this case marks a small victory, some observers have suggested that the law enforcement agency is dragging out the case and slowing down the case to upset Ripple Labs.
The latest development was covered by defense attorney and former U.S. Attorney James C. Filan, who earlier today cited the court’s text-only ruling.
“The SEC must inform the court of its position as to whether any further discovery is required within a week of individual defendants’ filing,” the ruling reads.
As part of the delayed schedule, defendants now have until April 8 to file a response to SEC complaints, while the SEC’s decision on additional discovery is due next week on April 15, and the joint proposed scheduling order is also due on April 22.
However, the dates are not set in stone and may change depending on how fast Ripple Labs moves, with Filan noting that:
“The filing of individual responders is a triggering event. When a response is filed, even if before April 8, a two-week countdown begins from the date of response for the filing of the SEC position on discovery and joint proposed scheduling order.”
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The reaction of the XRP community to the post was mixed, with some expressing anger at the SEC as “just trying to buy time on a lost cause”, while others, such as Twitter user “r ColeTheMailman”, suggested delays could be good for XRP. . in the long run.
“That’s good, the SEC will have no excuse for timing and further delays once the schedule is confirmed. Also, they will not be able to say that they were rushed when and if it comes to a summary judgment,” he said.
This is legal enforcement. The Securities and Exchange Commission was not prepared, but the court does not blame them. Everyone, including judges, is learning as they go. Think about how many people still don’t understand cryptography. Each extension request gives the court more time to study. — Swish (@honeynutcherri4) March 23, 2022