Bitnomial, a cryptocurrency derivatives exchange, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) over the regulatory authority concerning XRP futures contracts. The lawsuit disputes the SEC’s claim that XRP futures are “security futures,” which would place them under the agency’s jurisdiction.
This legal action follows Ripple’s own ongoing battle with the SEC over the classification of XRP, with Bitnomial seeking clarity on which regulator has authority over crypto derivatives.
Bitnomial Sues US SEC Over XRP Futures Status
In its lawsuit, Bitnomial asserts that the SEC is overstepping its bounds by labeling XRP futures as “security futures,” which would subject them to joint regulation by both the SEC and the Commodity Futures Trading Commission (CFTC). The exchange had filed for the approval of an XRP-US Dollar futures contract in August, soon after a federal judge ruled that XRP sales on secondary markets did not constitute securities.
The SEC, however, contacted Bitnomial following the filing, stating that XRP futures fell under the purview of both regulatory bodies and that Bitnomial must comply with additional requirements. According to the lawsuit, the SEC insisted that the exchange would need to register as a national securities exchange before offering the futures contract.
Bitnomial disagrees with the SEC’s classification of XRP, maintaining that the digital asset is not an investment contract and should be regulated by the CFTC, not the SEC. The lawsuit asks the court to rule that XRP futures are not securities futures and prevent the SEC from enforcing its claim.
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