Ripple in Trouble: XRP Investors Beware!

Crypto exchange Bitnomial has filed a lawsuit against the SEC, claiming $XRP is a security.

Crypto exchange Bitnomial has filed a lawsuit against the United States Securities and Exchange Commission (SEC) and five commissioners. The exchange accuses the agency of “violating its jurisdiction over digital assets” by claiming that XRP is a security.

In a lawsuit filed in Illinois federal court on October 10, Bitnomial argued that XRP is considered a commodity and that the SEC “exercises jurisdiction over a product regulated by the Commodity Futures Trading Commission and subject to its exclusive jurisdiction.”

Bitnomial argued that the SEC’s ruling in its lawsuit against Ripple Labs deemed that XRP traded in secondary markets was not a security. On October 2, the SEC had announced that it would appeal Judge Analisa Torres’ decision.

Bitnomial is seeking a declaratory judgment that its XRP futures are not securities and an injunction preventing the SEC from asserting jurisdiction over the derivatives or taking enforcement action against the company for listing them. On Oct. 8, global digital asset exchange Cryptocom also filed a lawsuit against the SEC after receiving a Wells notice indicating that the SEC could take action against the company.

Bitnomial’s lawsuit comes as Canary Capital filed a lawsuit with the SEC on Oct. 8 to launch a spot $XRP exchange-traded fund (ETF), days after Bitwise filed a similar lawsuit.

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