Bitnomial cryptocurrency derivatives exchange has initiated a lawsuit against the US Securities and Exchange Commission (SEC) regarding the regulatory authority of XRP futures. The lawsuit challenges the SEC’s definition of XRP futures as “security futures.”
Grounds of Case
Bitnomial claims that the SEC’s classification of XRP futures as securities has led to regulatory authority over these transactions by both the SEC and the Commodity Futures Trading Commission (CFTC). Last August, Bitnomial requested approval for the XRP-USD futures transaction.
After the federal judge ruled that sales of XRP did not constitute securities in secondary markets, the SEC contacted Bitnomial, stating that XRP futures fell under the jurisdiction of both the SEC and CFTC, and that additional requirements must be complied with.
Bitnomial’s Objection
Bitnomial argues that XRP is not an investment contract and therefore should be regulated by the CFTC rather than the SEC. The lawsuit requests that XRP futures be ruled not security futures and that the SEC’s claim not be enforced.
“We maintain our view that XRP is not a security.” -Bitnomial Representative.
This move, Ripple 
$0.538877In conjunction with ‘s ongoing battle with the SEC, it highlights the need to clarify the regulatory framework of crypto derivatives.
The outcome of the case could have significant impacts on future regulations between crypto markets and regulators. The CFTC already says it is responsible for a significant portion of the cryptocurrency industry. The FIT21 bill, which would clarify the CFTC’s authority over crypto, cannot move forward amid the busy agenda of politicians and the upcoming elections.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
