Bitnomial has sued the SEC, alleging it overstepped by classifying XRP as a security.
Bitnomial, a cryptocurrency exchange, has filed a lawsuit against the United States Securities and Exchange Commission and its five commissioners, alleging that the agency has “overextended its jurisdiction over digital assets” by asserting that XRP is a security.
In the lawsuit that Bitnomial filed on October 10 in a federal court in Illinois, the company asserted that XRP is already regulated as a commodity and that the Securities and Exchange Commission “asserts jurisdiction over a product that is already regulated by and subject to the exclusive jurisdiction of the Commodity Futures Trading Commission”.
Additionally, the exchange stated that by doing so, the SEC is unfairly duplicating and compounding the regulatory burden that Bitnomial is already under. In order to launch XRP futures contracts on its exchange in the month of August, Bitnomial, which received permission from the Commodity Futures Trading Commission (CFTC) to trade cryptocurrency futures in 2020, submitted a self-certification to the CFTC.
The Securities and Exchange Commission (SEC), arguing that XRP futures are securities, approached the exchange and demanded that Bitnomial register as a securities exchange before listing the products, according to the exchange’s statement.
P youIn order to offer XRP futures, Bitnomial stated that it “cannot possibly comply” with the regulatory criteria. This is because Ripple Labs, the company that issued the token, is required to register it as a security, which it has not done.The statement claims that the SEC has effectively prevented Bitnomial from listing XRP futures.
Furthermore, Bitnomial contended that a finding in the SEC’s case against Ripple Labs rejected the regulator’s position that XRP sold on secondary markets is a security. The lawsuit served as the context for this ruling.
The Securities and Exchange Commission (SEC) announced on October 2 that it would be appealing the verdict, with the goal of overturning the ruling that Judge Analisa Torres had made.
Bitnomial is requesting a declarative declaration that XRP futures are not securities, as well as an injunction that will prevent the Securities and Exchange Commission from asserting authority over derivatives products or taking enforcement action against the company for offering them.
A Texan cryptocurrency startup filed a brief in its continuing litigation with the regulator earlier in the month of October. The startup is seeking a preliminary injunction to prohibit the Securities and Exchange Commission from initiating enforcement action in the event that it lists cryptocurrency on its planned exchange.
Crypto.com, a global digital asset exchange, filed a lawsuit against the Securities and Exchange Commission (SEC) on October 8 after receiving a Wells notice, which is a document that states the SEC has the authority to take enforcement action against the company.
Canary Capital, an investment business, submitted a proposal to the Securities and Exchange Commission (SEC) on October 8 to launch a spot exchange-traded fund (ETF) for XRP. This comes just a few days after Bitwise submitted a similar proposal.
