Breaking: Bitnomial Sues SEC Over XRP Futures, Cites CFTC As Primary Regulator

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As a seasoned crypto investor with a knack for navigating the complexities of digital assets, I find myself closely following the latest developments between Bitnomial and the US Securities and Exchange Commission (SEC). It’s clear that this legal battle is not just about XRP futures; it’s about establishing clear boundaries for crypto derivatives in the United States.

Cryptocurrency derivatives platform Bitnomial has taken legal action against the U.S. Securities and Exchange Commission (SEC), challenging their regulatory power over XRP futures contracts. The lawsuit contests the SEC’s assertion that XRP futures are classified as “security futures,” a categorization that would bring them under the agency’s supervision.

This legal move by Bitnomial stems from Ripple‘s ongoing dispute with the SEC regarding the categorization of XRP. They are both looking for clarification as to which regulatory body holds jurisdiction over cryptocurrency derivative products.

Bitnomial Sues US SEC Over XRP Futures Status

In its legal dispute, Bitnomial argues that the Securities and Exchange Commission (SEC) is exceeding its authority by categorizing XRP futures as “security futures,” a classification that would require shared regulation between the SEC and the Commodity Futures Trading Commission (CFTC). The exchange submitted an application for the creation of an XRP-USD futures contract in August, following a court decision in which XRP transactions on secondary markets were deemed not to be securities.

After the filing, Bitnomial received communication from the SEC, indicating that XRP futures fell under the jurisdiction of both regulatory bodies. This meant that Bitnomial was required to meet additional standards. As stated in the lawsuit, the SEC stipulated that Bitnomial would have to register as a national securities exchange before they could offer the futures contract.

Biitnomial contests the Securities and Exchange Commission’s (SEC) categorization of XRP, arguing that it is not an investment contract. Instead, they believe it should fall under the purview of the Commodity Futures Trading Commission (CFTC). The lawsuit seeks to have the court decide that XRP futures do not constitute securities futures and to prevent the SEC from enforcing its assertion in this matter.

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2024-10-11 04:33