In space, latency will be dominated by distance. In low orbits, lasers will have low latency, good enough for interactive applications. Geosynchronous, Moon, and farther can't be helped.

Speed of light is still a limit, fastest possible roundtrip time between the Earth and moon is 2.5 seconds. Round trip between the Earth and Mars would be over 6 minutes when Mars is at its very closest to Earth.

in space its the distance, light has a speed limit

This is already sending data via lasers traveling through free space (and air, which has nearly the same speed of light as free space). You're not going to get a medium with a faster speed of light than free space unless you get into space-warping theoretical stuff. Even if you managed to run a fiber optic cable between a satellite and the earth, it would be around a third slower than lasers through space.