🔥 Bitnomial Takes on the SEC: XRP Futures Showdown Begins
posted 11 Oct 2024
Crypto exchange Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), contesting its stance that XRP futures should be classified as "securities futures contracts."
Bitnomial, which is regulated by the Commodity Futures Trading Commission (CFTC), applied to list XRP futures in August 2023, following the apparent conclusion of the SEC’s case against Ripple. At that time, a federal judge ruled that XRP was not a security.
However, the SEC disagreed with the ruling and asserted that XRP futures fall under joint jurisdiction between the SEC and CFTC. Bitnomial is pushing back, arguing that if XRP is not a security, then it logically follows that XRP futures cannot be securities futures contracts.
This dispute is part of a larger regulatory turf war between the SEC and CFTC over who should control the oversight of cryptocurrencies. The core issue remains whether digital assets should be classified as securities or commodities. Without clear regulatory guidelines, the fate of individual tokens will continue to be fought in court.
Bitnomial’s CEO Luke Hoersten. Source: Linkedin
Bitnomial not only disputes the SEC’s position on XRP futures but also seeks a court order to prevent the SEC from claiming jurisdiction over these products or pursuing any further legal action against Ripple.
"Setting this precedent is important not only for XRP, but also for all digital assets," said Bitnomial CEO Luke Hoersten. He noted that, unlike other companies locked in battles with the SEC, Bitnomial has never been accused of wrongdoing. This gives the company a unique chance to get a court ruling that overturns the SEC’s classification of XRP futures as securities.
If the court sides with Bitnomial, the decision could positively impact the ongoing legal discussions around XRP’s status and offer support to Ripple in its fight against the SEC.
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