Legal disputes can be a messy and time-consuming affair and that is exactly what has been going on between the SEC or the Securities & Exchange Commission and Ripple Labs. A recent update on the legal dispute between these two giants has made it to the portals of crypto world news today.
According to the reports, the SEC or the United States Securities and Exchange Commission has received a pretty minor victory over the opponent Ripple Labs since it has been provided with extension by the court for making the submission of a proper discovery schedule that was related to the defendant of the case against Ripple Labs.
While this victory might be a really small one, it is equally significant for the Securities and Exchange Commission of the United States since they will not be able to better prepare for the case.
“The filing of the Individual Defendants’ Answer is the triggering event. When the Answer is filed, even if before April 8th, the date the Answer is filed starts the two-week clock running for the filing of the SEC position on discovery” said the lawyer James K. Filan.
The U.S. Securities and Exchange Commission (SEC) has been granted an extension to submit a discovery schedule relating to individual defendants Brad Garlinghouse (CEO) and Chris Larsen (co-founder) as part of the case against Ripple Labs.
Bitter Legal Issues Between Ripple Labs and The SEC Move Further
The bitter legal dispute has been going on since late December 2020, after the SEC alleged that Ripple Labs generated $1.3 billion from an unregistered security offering via its XRP token. The firm denies that XRP is a security and is instead a method for international payments, and has argued that the SEC failed to give Ripple fair notice that its token was a security.
While the ruling in favour of the SEC in this instance marks a small win, some onlookers have suggested that the enforcement body is dragging its heels and slowing the case down to frustrate Ripple Labs.
The latest development was highlighted by the defence lawyer and former U.S. federal prosecutor James K. Filan, who cited a text-only order from the Court earlier today.
“The SEC shall inform the Court of its position on whether any additional discovery is required within a 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 submit an answer to the SEC’s complaints, while the SEC’s decision on additional discovery is due the following 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 could change depending on how fast Ripple Labs moves, with Filan noting that: “The filing of the Individual Defendants’ Answer is the triggering event. When the Answer is filed, even if before April 8th, the date the Answer is filed starts the two-week clock running for the filing of the SEC position on discovery and the Joint Proposed Scheduling Order.”
The XRP community’s reaction to the post was mixed and they have very different views regarding the extension and how it will affect the case. Some are expressing anger at the SEC as “just trying to gain time in a case already lost,” while others such as Twitter user “r ColeTheMailman” are suggesting that the delays could be good for XRP in the long run.
“This is a good thing, SEC will have no excuse as to timelines and more delays after a schedule has been confirmed. Also, they will not be able to say they were rushed when and if it comes down to summary judgment,” he said.
Also Read: Crypto Firms Might Be Charged with SEC Penalties for Violation of Securities Laws
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