The U.S. Securities and Exchange Commission (SEC) has received a discovery scheme extension involving Ripple Labs CEO Brad Garlinghouse and co-founder Chris Larsen for individual defendants as part of a lawsuit against Ripple Labs.
A bitter legal dispute has been ongoing since late December 2020, after the Securities and Exchange Commission said that Ripple Labs made $1.3 billion from an unregistered securities offering through Ripple’s XRP. The company denies that XRP is a security, but instead is an international payment method, and alleges that the Securities and Exchange Commission (SEC) did not notify Ripple that the token is a security.
While the decision in favor of the Securities and Exchange Commission in this case represented a small victory, some observers suggested that law enforcement slowed down and slowed down the case in order to upset Ripple Labs.
Notable recent developments were former U.S. Defense Attorney and U.S. Attorney James Phelan, who cited an injunction earlier today.
The order states that “the Securities and Exchange Commission will advise the court of its position regarding the need for further findings within one week of the filing of individual defendants’ filing.”
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 further findings expires a week after April 15, and the proposed joint planning order expires in April. 22.
However, the dates are not fixed and are subject to change depending on how fast Ripple Labs moves forward, with Filan noting that:
“The triggering event is the submission of responses by individual responders. Once a response is submitted, even if before April 8, the response filing date will begin with the two-week clock countdown for filing with the SEC. Post-discovery situation and proposed collaborative planning.
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The reaction of the XRP community to the post was mixed, with some expressing outrage at the SEC that they were “just trying to buy time in an already lost state”, while others, such as Twitter user “r ColeTheMailman”, suggested that the delays could be useful for XRP for the long term.
“That’s good, the SEC will have no excuse for schedules and further delays after the schedule is confirmed. And they will not be able to say that they are in a hurry when and if it comes to a final decision,” they said.