Bitnomial has filed a lawsuit against the SEC over its assertion that XRP futures are securities.

Conflict Background

In October, Bitnomial filed a lawsuit with an Illinois court, alleging the SEC overstepped its jurisdiction by claiming XRP futures contracts are securities. The firm argues the product is already regulated and under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC).

Bitnomial's Position

Bitnomial argues it cannot meet the SEC's requirements because XRP, as the underlying asset, is not registered as a security, and the firm lacks authority to register it. The lawsuit references the July 2023 ruling by Judge Torres, which concluded that sales of XRP on secondary markets were not securities transactions.

SEC and Ripple's Response

The SEC maintains its stance that XRP is a security and plans to appeal Torres' ruling, as announced on October 2. Meanwhile, Ripple has contested the SEC's stance with a cross-appeal, having previously agreed to a $125 million penalty.

The lawsuit between Bitnomial and the SEC could set a significant precedent for the classification of digital assets as securities and the future regulation of the industry.