On October 11, COINOTAG reported that the cryptocurrency derivatives trading platform Bitnomial has initiated a lawsuit against the U.S. SEC, challenging its jurisdiction over XRP futures contracts. The legal action follows the SEC’s assertion that XRP futures should be classified as “security futures”, which entails regulation by both the SEC and the CFTC. The SEC warned Bitnomial that failing to comply with their guidelines and continuing to list XRP futures could lead to breaches of federal securities laws. Furthermore, the SEC outlined that Bitnomial is required to fulfill additional obligations, such as becoming a registered national securities trading platform, prior to any XRP futures listings. The lawsuit contends that the SEC’s interpretation hinges on their belief that XRP is an investment contract, thus classifying transactions in XRP as securities under the Securities Exchange Act. However, Bitnomial firmly disputes this classification, asserting that XRP should not be considered an investment contract, rendering XRP futures non-security futures.
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