New York, Wednesday, October 16, 2024-Crypto derivatives exchange Bitnomial has filed a lawsuit against the US Securities and Exchange Commission (SEC) over the classification of its XRP Futures product as a security.
The lawsuit claims that the SEC’s labeling of XRP as a security forces the exchange to register as a national securities exchange, which Bitnomial contests.
In the court filing, Bitnomial argues that the SEC’s interpretation of XRP as an investment contract is inappropriate and that the exchange had already received certification from the Commodity Futures Trading Commission (CFTC).
The SEC’s position prevents Bitnomial from listing its XRP Futures, as XRP is not registered with the agency.
This legal action adds another layer to the ongoing battle over XRP’s status. XRP issuer Ripple has been in a protracted legal dispute with the SEC since 2020, with the SEC claiming Ripple raised $1.3 billion by selling unregistered securities.
A recent court decision ruled that while XRP’s institutional sales violated securities laws, its secondary market sales did not.
The legal debate over XRP stems from the SEC’s 2020 lawsuit against Ripple. The case saw partial victories for both parties, with Ripple being fined $125 million for unlawful institutional sales but avoiding liability for programmatic sales.
Both Ripple and the SEC are currently pursuing appeals related to these rulings.
