Bitnomial sues SEC over XRP futures regulation, questions SEC’s continued determination that XRP is a security

Crypto derivatives exchange Bitnomial has sued the U.S. SEC, challenging its authority to regulate XRP futures. Bitnomial, which is regulated by the CFTC, self-certified its XRP USD futures contracts in August after the SEC’s lawsuit against Ripple ended, when a federal judge rejected the SEC’s claim that XRP was a security. According to Bitnomial’s lawsuit, the SEC contacted the exchange shortly after the lawsuit was filed, saying that XRP futures were “security futures” subject to the joint jurisdiction of the SEC and CFTC, and that Bitnomial would violate federal securities laws if it went forward with the listing. The SEC also said Bitnomial must comply with other requirements before listing XRP futures, including registering as a national securities exchange. The lawsuit states: “The SEC believes that the underlying asset XRP is an investment contract and, therefore, XRP transactions constitute securities under the Securities Exchange Act.” Bitnomial believes that its lawsuit will help clarify how crypto derivatives should be regulated. The CFTC currently regulates BTC and ETH futures contracts, the only two digital assets that the SEC considers to be non-securities. (FOX Business)