The U.S. Securities and Exchange Commission (SEC) has been granted an extension to file an investigation schedule regarding individual defendants Brad Garlinghouse (CEO) and Chris Larsen (co-founder) as part of the Ripple Labs case.
The bitter legal dispute has been ongoing since late December 2020, after the SEC alleged that Ripple Labs generated $1.3 billion from an unregistered security offering through its XRP token. The company has denied that XRP is a security and is instead a method for international payments, arguing that the SEC failed to honestly inform Ripple that the token was a security.
While the ruling in favor of the SEC marks a minor win in this case, some onlookers have suggested the enforcement agency is pursuing and delaying the case to frustrate Ripple Labs.
The latest development was highlighted by defense attorney and former US federal prosecutor James K. Filan, who earlier today cited a court order that was in text form only.
“The SEC will notify the court of its position on whether an additional discovery is required within one week of the filing of the individual defendants,” the order read.
As part of the delayed schedule, the defendants now have until April 8 to file a response to the SEC’s complaints, while the SEC’s decision on additional discovery is due April 15 next week, and the joint proposed planning assignment must also be submitted on April 22. †
However, the dates are not set in stone and can change depending on how fast Ripple Labs moves, with Filan noting that:
“The submission of the response of the individual defendants is the reason. When the response is filed, even if it is before April 8, the response filing date will kick off the two-week clock for filing the SEC’s stance on discovery and the joint proposed planning order.
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The XRP community’s reaction to the post has been mixed, with some expression fury at the SEC as “just trying to gain time on a case already lost,” while others, such as Twitter user “r ColeTheMailman,” suggest the long-term delays could be good for XRP.
“This is a good thing, SEC has no excuse for timelines and more delays after a schedule is confirmed. They will also not be able to say that they were in a rush when and if it amounts to summary proceedings,” he said.
This is enforcement through a lawsuit. The SEC was not prepared, but the court is not holding them back. Everyone, including the judges, learns along the way. Think how many people still don’t understand crypto. Each extension request gives the court more time to learn.
— Wave (@honeynutcherri4) March 23, 2022