Canary

United

Crypto exchange Bitnomial sued the United States Securities and Exchange Commission and its five commissioners, accusing the agency of “overextending its jurisdiction over digital assets” by claiming that XRP is a security.
Bitnomial claimed in an Oct. 10 suit filed in an Illinois federal court that XRP (<a data-ct-non-breakable="null" href="https://cointelegraph.com/xrp-price-index" rel="null" target="null" text="null" title="null">XRP</a>) is already regulated as a commodity, and the SEC “asserts jurisdiction over a product that is already regulated by and subject to the exclusive jurisdiction of the Commodity Futures Trading Commission.”&nbsp;
The exchange added; “In doing so, the SEC inappropriately duplicates and compounds the regulatory burden on Bitnomial.”
In August, Bitnomial — which the CFTC approved in 2020 to trade crypto futures — filed a self-certification with the CFTC to list XRP futures contracts on its exchange.
The exchange said the SEC contacted it and asserted that XRP futures are securities and required Bitnomial to register as a securities exchange before listing the products.
Bitnomial said it “cannot possibly comply” with the legal requirements to list XRP futures because the token’s issuer, Ripple Labs, must register it as a security, which it hasn’t.
“The SEC has effectively blocked Bitnomial from listing XRP futures,” it claimed.
<figure>
 <img alt="Ripple, SEC, XRP" src="https://s3.cointelegraph.com/uploads/2024-10/019279a5-0251-7d19-9d3d-1febd373f88b" title="">
 <figcaption style="text-align: center;">
 An excerpt from Bitnomial’s filing claims the SEC “overextended” its authority. Source: PACER
 </figcaption>
</figure>
Bitnomial also argued <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security" rel="null" target="null" text="null" title="null">that a ruling</a> in the SEC’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/the-sec-vs-ripple-lawsuit-everything-you-need-to-know" rel="null" target="null" text="null" title="null">lawsuit against</a> Ripple Labs rejected the regulator’s view that XRP traded on secondary markets is a security.
On Oct. 2, the SEC said it would <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-files-notice-appeal-ripple-lawsuit" rel="null" target="null" text="null" title="null">appeal that decision</a>, looking to overturn Judge Analisa Torres’ ruling.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ripple-labs-escalates-dispute-sec-notice-cross-appeal" rel="null" target="null" text="null" title="null">Ripple Labs escalates dispute with SEC, files notice of cross-appeal</a>
Bitnomial is seeking a declaratory judgment that XRP futures are not securities and an injunction preventing the SEC from asserting jurisdiction over the derivatives products or pursuing enforcement action against the company for listing them.
Earlier in October, a Texan crypto startup <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-startup-accuses-sec-regulatory-land-grab" rel="null" target="null" text="null" title="null">filed a brief</a> in an ongoing lawsuit with the regulator seeking a preliminary injunction to prevent the SEC from taking enforcement action should it list crypto on its planned exchange.
On Oct. 8, global digital asset exchange Crypto.com <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-com-sues-sec-protect-future-crypto-us" rel="null" target="null" text="null" title="null">also sued</a> the SEC after receiving a Wells notice stating that the SEC could bring enforcement action against the firm.
Bitnomial’s suit comes as investment firm Canary Capital <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/canary-capital-files-xrp-etf-bid-following-bitwise" rel="" target="_self" text="null" title="https://cointelegraph.com/news/canary-capital-files-xrp-etf-bid-following-bitwise">filed with the SEC</a> on Oct. 8 to launch a spot XRP exchange-traded fund (ETF), days after a similar bid from Bitwise.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/plus-token-ether-fud-crypto-king-asia-express/" rel="null" target="null" text="null" title="null">Plus Token’s $1.3B ETH could be sold, ‘Crypto King’ arrested: Asia Express</a>

Bitnomial sues SEC over claim that XRP is a security

Cointelegraph

Other articles published on Oct 11, 2024

Bitcoin Recognized as Divisible Property in South Korean Divorces

Can BlockDAG’s 20,000x Potential Overtake Polkadot’s Upgrade and BNB’s Stability in 2024?

Ethereum ETFs Lag Behind Bitcoin with Disappointing Stats in First 79 Days

5 High-Performing Altcoins Set to Outperform Bitcoin (BTC) in Q4 2024

Analysts Predict Major Rallies for Chainlink and Lunex Network, Calling Current Prices “Once-In-a...

DWF Labs Announces Falcon Finance Synthetic Stablecoin Details

Join our free newsletter for daily crypto updates!