- Bitnomial sued SEC over regulatory control of XRP Futures classification
XRP’s price remained steady amid the SEC’s intensified scrutiny of major crypto entities
As a seasoned researcher with a decade of experience in the ever-evolving cryptocurrency landscape, I find myself both intrigued and concerned by the latest developments between Bitnomial and the SEC over XRP Futures. The ongoing legal tussle between Ripple and the SEC has been a rollercoaster ride since its inception in 2020, and this new chapter is no exception.
As a financial analyst, I’m currently involved in a legal dispute between Bitnomial, a cryptocurrency derivatives exchange, and the U.S. Securities and Exchange Commission (SEC). The crux of the matter revolves around the SEC’s jurisdiction over Ripple‘s [XRP] futures contracts. Bitnomial is challenging the regulatory authority that the SEC claims it has in this specific area.
The exchange challenged the SEC’s position that XRP Futures fall under ‘Security Futures,’ which places them under its regulatory scope.
Ripple Labs vs. SEC: A brief history
It’s no secret that since 2020, the continuous court battle between Ripple and the Securities and Exchange Commission (SEC) regarding the classification of XRP has been an extended dispute.
Importantly, Judge Analisa Torres has determined that XRP doesn’t meet all the conditions set by the SEC’s Howey test. As a result, transactions involving the resale of XRP are considered exempt from being classified as unregistered securities.
On October 2nd, the SEC stepped up their efforts in the case by filing an appeal, intending to contest Judge Torres’s decision and overturn this significant ruling they disagree with.
The present-day
In a recent legal dispute, Binomial claims that shortly following their filing, the Securities and Exchange Commission (SEC) reached out to the exchange, stating that XRP Futures contracts are categorized as ‘Security Futures.’ Consequently, these contracts would be under the joint jurisdiction of both the SEC and Commodity Futures Trading Commission (CFTC).
The Securities and Exchange Commission (SEC) cautioned Bitnomial against listing XRP Futures without fulfilling extra regulatory requirements, as such an action could potentially breach federal securities regulations.
Additionally, the SEC suggested that Bitnomial should register as a national securities exchange to ensure compliance, prior to listing XRP futures.
The lawsuit stated,
Execs weigh in…
In addition to seeking clarification about the classification of XRP Futures, Binomial’s lawsuit aims to secure a court order preventing the Securities and Exchange Commission (SEC) from exerting regulatory authority over XRP Futures.
Consequently, Bitnomial intends to seek a decision that establishes XRP Futures as distinct from ‘Security Futures,’ and further prevents the SEC from taking any regulatory action against the exchange regarding its proposed XRP Futures trading.
Remarking on the same, Bitnomial CEO Luke Hoersten told FOX Business,
Setting this precedent isn’t solely about XRP; it encompasses all digital currencies. In contrast to other American companies embroiled in legal battles with the SEC, Bitnomial is not charged with any misconduct.
He added,
In light of this, we can take the initiative to seek a court ruling regarding whether XRP futures should be classified as securities or commodities, given the precedent set by the court decision in the Southern District of New York that classified XRP as a non-security.
Impact on XRP’s price
In spite of continuous regulatory examination, the value of XRP showed strength, increasing by 1.55% over the past day. At the moment of reporting, it was being traded at approximately $0.5357 according to CoinMarketCap.
Since Gary Gensler took over at the SEC in 2021, there’s been a significant increase in their scrutiny of major cryptocurrency companies. This heightened focus has led to lawsuits against businesses like Coinbase, Ripple, Uniswap, and numerous others.
Lately, Crypto.com announced they’ve also taken legal action against the Securities and Exchange Commission (SEC) following a Wells Notice—a warning suggesting possible regulatory penalties.
I’m squarely in the midst of the constant tussle between the SEC and the crypto world, where we, the investors, are striving tirelessly to preserve our space within this dynamic market. Despite the ever-increasing regulatory hurdles that threaten to undermine our progress, we continue to fight for our ground.
Read More
- DOGS PREDICTION. DOGS cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- STG PREDICTION. STG cryptocurrency
- TON PREDICTION. TON cryptocurrency
- EVA PREDICTION. EVA cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- HI PREDICTION. HI cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
2024-10-11 16:08