The Court in Delaware has dismissed Tetragon Financial Group Ltd.’s allegations that the US Securities and Exchange Commission (SEC) has formally defined the position of XRP. As a result, according to the San Francisco-based fintech company, the SEC has NOT defined XRP as a ‘security.’
Tetragon, a UK-based hedge fund with $2.32 bil total assets, has accused Ripple early in the year, claiming it wants to implement its statutory right to ask Ripple to sell Series C stocks it owns. Ripple has stated at the period that the case had no validity because XRP had not yet been deemed a security.
The case was filed after the SEC accused the firm and its two prominent manager with operating an unlicensed securities to earn worth $1.3 billion. According to the Delaware Judge,
“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.”, “The SEC is not the authority making the determination on this track is permissible under the agreement.”
Tetragons’ complaint, as per Ripple, is a good bid to reap the benefits of the SEC’s claims, which is “dead wrong.”
The SEC has admitted in a different lawsuit submited by XRP owners against the department that it has not given any decision on XRP’s position. Furthermore, the Court ruling over the SEC’s lawsuit is the only instrument for checking the legitimacy of Ripple’s claims. Ripple has remarked,
“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.”