Cryptocurrency derivatives exchange Bitnomial is suing the U.S. Securities and Exchange Commission (SEC) over its authority to regulate XRP futures, challenging XRP’s classification as a security. The exchange, which is regulated by the Commodity Futures Trading Commission (CFTC), is challenging the SEC’s claim that XRP futures are “security futures” and aims to set a precedent that would affect all digital assets. The case seeks a clear court ruling on XRP’s status.
Bitnomial Faces SEC Over XRP Futures Contract
Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in an Illinois district court, challenging the agency’s authority over its proposed XRP futures contract. The crypto derivatives exchange, which is regulated by the Commodity Futures Trading Commission (CFTC), disputes the SEC’s claim that XRP is still classified as a security.
In its lawsuit, Bitnomial highlighted the SEC’s position:
The SEC considers the underlying asset, XRP, to be an investment contract and therefore transactions in XRP constitute a security under the Securities Exchange Act.
“Bitnomial disagrees with the SEC’s view that XRP is an investment contract and therefore a security, and that XRP futures are therefore futures contracts for securities,” the company added.
Bitnomial CEO Luke Hoersten emphasized the broader implications of the case, telling Fox Business:
Setting this precedent is not just about XRP; it is about all digital assets.
Horsten also pointed to the company’s unique position in pushing for a clear court ruling on the classification of XRP futures. “Unlike other U.S. companies that have filed suit with the SEC, Bitnomial has not been accused of any wrongdoing,” he said. He noted that this position allows Bitnomial to seek a final decision on whether XRP futures should be classified as securities or commodities, following the Southern District of New York ruling that XRP is not a security.
