- Bitnomial challenges SEC’s classification of XRP as a security.
- The SEC filed a notice of appeal in the Ripple case last week.
Bitnomial, a Chicago-based cryptocurrency derivatives exchange, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The filing challenged the assertion of the SEC that XRP futures should be classified as “Security Futures.”
Bitnomial’s lawsuit is the second case filed against the SEC this week. Crypto.com, a digital asset exchange, announced it was suing the SEC on Tuesday, alleging the regulator is invading by claiming that all crypto assets are securities.
Bitnomial is operated under the affiliated agency of SEC, the Commodity Futures Trading Commission (CFTC). Besides, the exchange self-certified XRP-US Dollar futures contract after the conclusion of the SEC-Ripple case in August.
Moreover, the Ripple case had focused on the classification of XRP as a security. Whereas, the court ruled that XRP sales to institutional investors are qualified as securities, but not when sold to the general public.
Besides, the SEC has filed a notice of appeal in the Ripple case last week to likely contest a New York federal judge’s decision that XRP is not a security when traded on exchanges. On the other hand, Ripple filed a notice of cross-appeal on Thursday. The entities haven’t disclosed their appeal specifics.
The Prolonged Legal Battle
The SEC’s demand to regulate XRP futures follows a legal battle with Ripple Labs. This court ruling has since led to various regulatory challenges over the categorization of XRP and its related products.
Ripple Labs has been ordered to pay nearly $125 million to the U.S. Securities and Exchange Commission, by a Manhattan court judge. The penalties come over the charges of improperly selling the XRP, crypto token according to a court filing. The total was far below the $2 billion the Securities and Exchange Commission sought, but also above the $10 million, Ripple argued for in a court filing.
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