Bitnomial, a digital asset derivatives exchange, has filed a lawsuit against the US SEC over its attempt to assert jurisdiction over the planned XRP Futures contract. It claims that this product is regulated by the CFTC and not the SEC.
The major development comes in when Ripple Labs has filed a cross-appeal in its ongoing case against the commission. It ensures that no stone is left unturned as the SEC appeals its previous loss. Interestingly, the regulator didn’t appeal the ruling that XRP is a security.
Bitnomial fights back over XRP Futures
According to the release, Bitnomial is suing the US SEC to contest the agency’s claim of jurisdiction over its planned XRP Futures contract. The SEC argues that the XRP Futures which is yet to be listed by the exchange falls under its regulatory purview despite being regulated by the CFTC.
Bitnomial is planning to introduce physically delivered XRP Futures. It is first among other planned digital asset futures on the US regulated derivatives exchange. It added that the exchange self-certified with the CFTC on August 9, 2024. However, the commission contacted the exchange about the contract asserting that the derivative is a security future.
The exchange aims to obtain a formal court judgment to protect the integrity of futures markets. It affirms the CFTC’s jurisdiction and curbs the SEC’s overreach in the digital asset derivatives space. Bitnomial has not listed XRP Futures yet and has not faced any allegations of wrongdoing from the commission. This lawsuit looks like a crucial step in defining regulatory boundaries, according to analysts.Â
Following the recent ruling from the Southern District of New York which stated that XRP is not inherently security, Bitnomial is positioning itself to assert that XRP Futures are not security futures.
XRP declines on longer time frame
XRP price jumped by over 2% in the last 24 hours while Bitcoin (BTC) remained under pressure. XRP has seen a recovery lately but it printed red indexes most of the time. It has recorded a decline of over 12% on the year to date basis while it has gained by just 5% in the last 90 days.Â
XRP is trading at an average price of $0.536 with a jump of 54% in its trading volume. It is still down by 86% from the all time high (ATH) of $3.84, recorded in January 2018. Outcomes of intensified legal battles against the SEC will guide the XRP price move ahead.
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