Bitnomial sues SEC over regulatory management of XRP futures classification XRP price remains stable amid increased SEC surveillance of major crypto entities
Cryptocurrency derivatives exchange Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) over its regulatory authority for Ripple (XRP) futures contracts.
The exchange disputed the SEC’s view that XRP futures constitute regulated “security futures.”
Ripple Labs vs. SEC: A Brief History
Needless to say, the ongoing legal dispute between Ripple and the SEC over the status of XRP is a long-running war that began in 2020.
Notably, Judge Annalisa Torres recently ruled that XRP itself does not meet all the criteria under the SEC’s Howie test. This means that secondary sales of XRP will not be considered unregistered securities.
However, on October 2, the SEC escalated the case by filing an appeal challenging Judge Torres’ decision and seeking to reverse this important ruling.
present day
Bitnomial alleges in its recent lawsuit that the SEC contacted the exchange shortly after filing, asserting that XRP futures contracts constituted “securities futures” and were therefore subject to joint supervision by the SEC and CFTC. .
The SEC warned Bitnomial that proceeding with the XRP futures listing without complying with additional regulatory obligations violates federal securities laws.
Additionally, the SEC recommended that Bitnomial must register as a national securities exchange to meet compliance requirements before listing XRP futures.
The complaint states:
Source: www.bitnomial.com
Executives will also listen to their opinions…
However, Bitnomial’s legal action goes beyond seeking clarification of XRP futures classification. The exchange is also seeking a court order to prevent the SEC from asserting regulatory control over XRP futures.
Therefore, Bitnomial not only confirms that XRP futures are not “securities futures,” but also issues a ruling that prevents the SEC from initiating enforcement action against the exchange in connection with its planned XRP futures offering. We aim to ensure that
Regarding the same, Bitnomial CEO Luke Hoersten told FOX Business:
“Establishing this precedent is not just a matter of XRP; it is about all digital assets. Unlike other US companies in litigation with the SEC, Bitnomial has not been accused of wrongdoing.”
He added:
“As such, following the landmark non-security ruling in the Southern District of New York, we are uniquely positioned to seek a court ruling regarding the classification of XRP futures as a security or commodity.”
Impact on XRP price
Despite ongoing regulatory scrutiny, XRP price has remained resilient, rising 1.55% in the past 24 hours. According to CoinMarketCap, it was trading at $0.5357 at the time of writing.
Unfortunately, since Gary Gensler took office in 2021, the SEC has increased its focus on prominent crypto entities. At that time, it took legal action against companies such as Coinbase, Ripple, and Uniswap.
Recently, Crypto.com also revealed that it had filed a lawsuit against the SEC after receiving a Wells Notice indicating potential regulatory charges.
These actions highlight the ongoing conflict between the SEC and the crypto industry, which is struggling to maintain its presence in the market despite growing regulatory challenges. There is.
Next: SEC charges Cumberland with unregistered virtual currency trading
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