“SEC maintains that XRP is a security,” exchange says in new legal twist on the case

  • A derivatives platform, regulated by the CFTC, will launch XRP futures.

  • The lawsuit seeks to protect the industry from the SEC’s excess authority.

Cryptocurrency derivatives exchange Bitnomial is taking the US Securities and Exchange Commission (SEC) to court, accusing it of overextending its jurisdiction by claiming that the XRP token, issued by the company Ripple, and its products They are securities.

Bitnomial, regulated by the Commodity Futures Trading Commission (CFTC), sued the SEC in an Illinois district court in which it claims that the agency contacted them alleging that XRP futures are “security securities” and that, therefore, they are subject to the joint jurisdiction of the Securities and Exchange Commission, as well as the CFTC.

Bitnomial is preparing to launch XRP Futures contracts in US dollars, a decision it made after a federal judge ruled against the SEC’s position, ruling that XRP is not considered a security. However, the agency continued to insist on its position on the asset issued by Ripple and warned Bitnomial that it would be violating federal securities laws if proceeded with the XRP futures listing.

The SEC has questioned the regulation of our product, arguing that the XRP futures contract should be considered a “security future”, which would give the agency jurisdiction over it. However, this contract is regulated under the Commodity Futures Trading Commission, which places its oversight outside the statutory scope of the SEC, Bitnomial notes in a statement published on their website.

“Given the Southern District of New York’s recent landmark determination that XRP is not inherently a security and was not a security when it was traded in the secondary market, Bitnomial Exchange is well positioned to seek a judicial determination that They are stock futures. “Despite its recent defeat in court, the SEC still maintains that XRP is a security.”

Bitnomial.

The exchange intends to move forward by listing your XRP Futures productwhich will be physically delivered to its clients, becoming the first digital asset futures listed on its regulated derivatives platform in the United States.

With this demand, Bitnomial aims to obtain a formal judgment that protects futures marketsthe jurisdiction of the CFTC and the participants, of the excess jurisdiction of the SEC, as they make clear in their statement. It is noteworthy that the lawsuit filed by the cryptocurrency exchange against the agency is preventive, given that, until now, the company has not received any complaint from the regulatory commission.

On the other hand, while Bitnomial was filing its lawsuit against the SEC in an Illinois court, Ripple filed a counterclaim after the agency filed in early October its intention to appeal a court decision that virtually closed a long-standing litigation with the cryptocurrency company.

Ripple Chief Legal Officer Stuart Alderoty is convinced that the SEC will continue to lose any legal battle it undertakes against Ripple. Source: X/s_alderoty.

The appeal filed by Ripple is a cross-appeal that allows the company to re-evaluate any new decisions that may arise from the SEC appeal process, thus ensuring that all relevant points of law are thoroughly reviewed. However, so far the agency has not submitted a mandatory form and essential for your appeal to progress

In this form C or indispensable document of the legal procedure, the agency had to notify if its appeal goes against the decision that the XRP token is not a security when sold on exchanges or if it disagrees with the fine of 125 million dollars, instead of the $2 billion requested by the SEC.

However, Bitnomial’s insistence that XRP is a security, revealed in its lawsuit, It is a sign that the SEC will be inclined to appeal the court ruling which last August determined that XRP sales on exchanges and other distributions should not be classified as securities.

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