Crypto exchange Bitnomial has filed a lawsuit against the United States Securities and Exchange Commission (SEC), claiming the agency is overstepping its authority regarding the XRP token.
Bitnomial’s filing states that the SEC has “overextended” its authority.
Source: PACER.
Background of the Lawsuit
On October 10, Bitnomial argued in an Illinois federal court that XRP is already regulated as a commodity. The exchange asserts that the SEC's claim of XRP being a security adds unnecessary regulatory pressure, duplicating existing regulations overseen by the Commodity Futures Trading Commission (CFTC).
Regulatory Conflicts
Bitnomial highlighted that the SEC's actions complicate its operations. In August, the exchange received CFTC approval to trade crypto futures and sought to list XRP futures contracts. However, the SEC intervened, asserting these futures are securities, which would require Bitnomial to register as a securities exchange—a step they argue is impossible without Ripple Labs, the issuer of XRP, registering it as a security.
Ripple's Legal Battles
The lawsuit references a recent ruling in the SEC's case against Ripple Labs, which determined that XRP traded on secondary markets is not classified as a security. The SEC plans to appeal this decision, adding complexity to Bitnomial's situation.
Seeking Clarity and Relief
In their filing, Bitnomial seeks a declaratory judgment clarifying that XRP futures are not securities and an injunction preventing the SEC from asserting jurisdiction over these products or taking enforcement actions against the exchange.
Broader Implications in the Crypto Market
Bitnomial's legal action comes amid challenges facing the SEC. Recently, a Texas-based crypto startup sought a preliminary injunction to shield itself from SEC enforcement while planning to list crypto on its exchange. Additionally, on October 8, Crypto.com filed a lawsuit against the SEC after receiving a Wells notice, indicating potential enforcement actions against them.
As of Writing this article XRP was trading at $0.53 With 1.38% increase in last 24 hours as per Coinpedia Markets data.
For more insights into XRP's future and the ongoing legal battles, read our comprehensive XRP Price Prediction article.
As Bitnomial navigates this legal landscape, the outcome of its lawsuit could significantly impact the exchange and the broader crypto industry. The ongoing debates about the regulatory status of XRP highlight the urgent need for clarity in how digital assets are classified and regulated.
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