Chicago-based exchange Bitnomial has dropped its lawsuit against the SEC ahead of launching XRP futures in the US, citing improved regulatory clarity.
Lawsuit Dismissal and Futures Launch
Bitnomial announced that its CFTC-regulated XRP futures will be available starting March 20 for current users. These are the first physically settled XRP futures in the US, which the company believes will have a significant market impact.
SEC Conflict History
Bitnomial sued the SEC and its five commissioners on October 10, alleging jurisdiction overreach by claiming XRP is a security. However, after a July 13, 2023 ruling by Judge Analisa Torres, which declared XRP is not a security for retail sales, the SEC dropped its appeal.
Changes in Crypto Regulation
Under acting chair Mark Uyeda, the SEC has slowly retreated from its hardline crypto stance, initially built under former chair Gary Gensler. This includes rolling back several measures affecting crypto firms, such as a proposal to tighten crypto custody standards for investment advisers.
Bitnomial's decision to drop its lawsuit against the SEC reflects improved regulatory conditions. The launch of the first CFTC-regulated XRP futures contract marks a significant step for the US cryptocurrency market.
