XRP Futures Controversy: Exchange Takes SEC to Court Over Jurisdiction
Bitnominal, a digital asset derivatives exchange regulated by the CFTC, claims that the U.S. Securities and Exchange Commission (SEC) maintains its stance that XRP is classified as a security.
The exchange has recently taken legal action against the SEC, arguing that the agency is attempting to overreach its authority regarding futures contracts, which, according to Bitnominal, fall solely under CFTC jurisdiction.
The lawsuit asserts that the SEC’s actions result in unnecessary duplication of regulatory requirements for Bitnominal. Earlier in August, Bitnominal filed for self-certification with the CFTC to offer XRP futures trading on its platform, a step that could lead to the introduction of an XRP ETF in the U.S.
However, shortly after submitting this application, the SEC intervened, claiming that such a listing would contravene federal securities regulations. The SEC contends that XRP futures fall under both its and the CFTC’s jurisdiction as “security futures.”
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Bitnominal strongly disagrees and seeks a court ruling that XRP futures do not qualify as security futures, aiming to prevent the SEC from initiating any enforcement actions related to the proposed XRP futures listing.
In a related development, Ripple, the firm behind XRP, has pushed back against the SEC by filing a cross-appeal in response to the agency’s appeal in their ongoing case. Ripple’s CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty have expressed confidence that the SEC will not successfully challenge XRP’s legal status.