Bitnomial disputes the SEC’s designation of XRP as a security. Last week, the SEC filed an appeal notice in the Ripple case. Bitnomial, a Chicago-based cryptocurrency derivatives exchange, has now filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), challenging its claim that XRP futures should be categorized as “Security Futures.”
This marks the second lawsuit against the SEC this week. On Tuesday, Crypto.com, a digital asset exchange, also sued the SEC, alleging regulatory overreach by asserting that all crypto assets are securities.
Bitnomial operates under the oversight of the Commodity Futures Trading Commission (CFTC), an affiliate of the SEC. The exchange self-certified an XRP-US Dollar futures contract following the conclusion of the SEC-Ripple case in August.
The Ripple case primarily focused on whether XRP should be classified as a security. The court ruled that XRP sales to institutional investors qualify as securities but not when sold to the general public.
Last week, the SEC filed an appeal notice in the Ripple case, likely seeking to challenge a New York federal judge’s ruling that XRP is not a security when traded on exchanges. Ripple, in turn, filed a cross-appeal, though neither party has revealed specific details about their appeals.
The extended legal battle stems from the SEC’s effort to regulate XRP futures. This court ruling has sparked further regulatory debates over XRP’s classification and related products.
A Manhattan court judge ordered Ripple Labs to pay nearly $125 million to the SEC for improperly selling XRP. While the amount is far below the SEC’s initial demand of $2 billion, it exceeds the $10 million Ripple had argued for in court.
