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The legal battle between the SEC and Ripple (XRP) sees new developments each day. In a surprising twist, crypto derivatives exchange Bitnomial has filed a lawsuit against the SEC, challenging the classification of XRP futures as securities.
Bitnomial Challenges the SEC Over XRP Futures
According to a report by Fox Business, Bitnomial claims that the SEC is exercising “improper” authority over XRP futures and has filed a lawsuit to contest this. The exchange argued in its filing that after the initial XRP case, it applied to the Commodity Futures Trading Commission (CFTC) for permission to offer XRP futures contracts.
The lawsuit states that shortly after Bitnomial’s application, the SEC contacted the company, asserting that XRP futures fall under joint SEC and CFTC jurisdiction as securities futures. The SEC warned Bitnomial that continuing to list XRP futures without complying with federal securities laws would be a violation.
The SEC further demanded that Bitnomial register as a national securities exchange before offering XRP futures. Bitnomial, however, argues that the SEC’s stance that XRP is a security is incorrect and that XRP futures should not be classified as securities futures.
Ongoing Regulatory Dispute Between SEC and CFTC
The SEC’s position that XRP futures are securities futures has heightened tensions between the SEC and CFTC, two agencies competing for regulatory control over crypto assets. The broader question of whether cryptocurrencies should be classified as securities or commodities remains unresolved, with courts making decisions on a case-by-case basis in the absence of clear regulations.
Ripple’s Fight Against the SEC’s Classification
This legal dispute adds to the growing tension between the SEC and key players in the crypto industry. Ripple, which is already in a legal battle with the SEC over the classification of XRP as a security, has continued to contest the agency’s decisions. Ripple’s legal challenge to the SEC’s classification has sparked widespread debate about how crypto assets should be regulated.
As the legal landscape around cryptocurrency continues to evolve, this case highlights the increasing friction between regulators and crypto firms over the future of digital asset regulation.
