As a seasoned financial analyst with over two decades of experience in navigating the complexities of regulatory battles and digital assets, I find myself intrigued by Bitnomial’s legal move against the SEC regarding the classification of XRP. The case hinges on the jurisdiction divide between the SEC and the CFTC, a matter that has been debated extensively within the industry.
As a crypto investor, I’m sharing some exciting news about a legal battle unfolding between Bitnomial Exchange, LLC and the US Securities and Exchange Commission (SEC). On October 10, Bitnomial filed a lawsuit in the United States District Court for the Northern District of Illinois, challenging the SEC’s assertion that XRP is considered a security.
Bitnomial Sues SEC Over XRP Classification
In recent news, Binomial, a market approved by the Commodity Futures Trading Commission (CFTC) for designated contracts, has been under scrutiny following its intention to list XRP futures. The Securities and Exchange Commission (SEC) has taken issue with this move, as stated in their complaint: “The SEC claims authority over a product that is already governed by, and falls solely under the jurisdiction of, the CFTC.” This action from the SEC occurred following Binomial’s self-certification with the CFTC to list the futures contract, which was set to begin trading on or after August 13, 2024.
Before Bitnomial could list XRP Futures for trading, the Securities and Exchange Commission (SEC) reached out to discuss their plans. In these discussions, the SEC expressed concern that if Bitnomial went ahead with listing XRP Futures based on their CFTC self-certification, they would be breaking federal securities laws. This information is disclosed in the complaint.
In simpler terms, the Securities and Exchange Commission (SEC) argued that the cryptocurrency asset in question is considered an investment contract, making it a security. This means that XRP Futures, which are related to this security, fall under the shared authority of both the SEC and another body called the Commodity Futures Trading Commission (CFTC). Bitnomial explains that according to the SEC’s stance, they must fulfill additional SEC regulations before listing these futures. These requirements include registering as a national securities exchange and submitting to the SEC’s oversight, which is a substantial task.
The exchange contests this categorization, highlighting that Judge Analisa Torres’ summary judgment on July 13, 2023, in the Southern District of New York, contradicts the Securities and Exchange Commission’s view that the token functions as a security during secondary market transactions.
According to Binomial’s lawyers, Binomial doesn’t align with the Securities and Exchange Commission’s (SEC) perspective that XRP is an investment contract, making it a security. Consequently, they argue that XRP Futures cannot be classified as security futures. They also assert that adhering to SEC regulations would prove challenging because it might necessitate Binomial registering as a national securities exchange. This registration process could potentially impose excessive regulatory burdens and costs on the company.
In simpler terms, Bitnomial is asking the court to rule that XRP futures are not considered security futures and to prevent the Securities and Exchange Commission (SEC) from claiming authority over these transactions on their exchange. They argue this decision is necessary before listing the contract, as otherwise, they would be at risk of SEC enforcement actions regarding the trading, purchasing, or selling of these futures on Bitnomial’s platform.
The legal action by Bitnomial occurs concurrently with the SEC’s intention to appeal Judge Torres’ final decision, which was made public on October 2nd. As of now, the SEC has not disclosed their reasons for appealing. On the 8th of October, Crypto.com followed suit by filing a lawsuit against the SEC, having received a Wells notice earlier. Interestingly, Bitnomial’s case comes after Canary Capital submitted an application to the SEC on the 8th of October for a spot XRP exchange-traded fund (ETF), following closely behind a similar application from Bitwise that was made just days prior.
At press time, XRP traded at $0.5344.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD ZAR PREDICTION
- BICO PREDICTION. BICO cryptocurrency
- VANRY PREDICTION. VANRY cryptocurrency
- USD CLP PREDICTION
- ASTO PREDICTION. ASTO cryptocurrency
- RIDE PREDICTION. RIDE cryptocurrency
- NXRA PREDICTION. NXRA cryptocurrency
2024-10-11 12:42