Bitnomial Sues SEC in Illinois Court Over XRP Futures, Challenges Security Classification

Oct 11, 2024, 05:44 AM

Bitnomial, a Chicago-based crypto derivatives exchange, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in an Illinois federal court, accusing the agency of overstepping its authority by classifying XRP as a security. Bitnomial argues that XRP is already regulated as a commodity under the sole jurisdiction of the Commodity Futures Trading Commission (CFTC), and that the SEC's assertion of joint jurisdiction over its planned XRP futures contracts duplicates and compounds the regulatory burden. The exchange aims to launch XRP futures backed by the token and contends that the SEC's actions are causing chaos in the regulatory environment.