Today, the Court in Delaware rejected Tetragon’s claim that the SEC had officially determined XRP’s status. This ruling, coupled with a separate filing the SEC made today, should put to rest any confusion; the SEC has NOT determined that XRP is a “security.”
As the Delaware Judge stated: “But XRP is no more a security after the SEC filed the enforcement action than it was before it. A determination …resolves the question of whether XRP is a security. The enforcement action, by contrast, asks that question. The question is not yet resolved, so a determination has not yet been made. And when it is made, it will be made by the District Court.” Therefore, Tetragon’s claim — that a securities default occurred — has been proven wrong.
Separately, the SEC itself acknowledged today in another case brought by XRP holders against the agency that it has not made any determination as to XRP’s status. Per their words: the Court hearing the SEC’s case against Ripple is “the exclusive method for testing the validity” of the SEC’s claims against Ripple.
Let’s call Tetragon’s lawsuit what it is — an opportunistic move to take advantage of the SEC’s allegations. What has always been clear (and made so even more today) is that the SEC still has to try to prove their case in Court; which we do not believe they will be able to do. As our lawyers have said publicly, the SEC is “dead wrong!”
We look forward to bringing the SEC’s case to a just and speedy resolution, and remove the cloud that the SEC’s misguided actions have cast over the XRP market.