Bitnomial, a Chicago-based cryptocurrency exchange, has filed a lawsuit against the Securities and Exchange Commission (SEC) due to disagreements over the classification of cryptocurrency XRP.
Lawsuit Against SEC
On October 10, Bitnomial filed a lawsuit in an Illinois federal court, claiming that the SEC is overstepping its jurisdiction by classifying XRP as a security.
Dispute Over XRP's Classification
The conflict revolves around XRP's classification in the cryptocurrency market. In 2020, Bitnomial received CFTC approval to trade cryptocurrency futures. In August 2024, the company submitted a self-certification to list XRP futures on its platform. However, the SEC argues that XRP futures are securities.
Regulatory Implications
Bitnomial accuses the SEC of creating unnecessary regulatory challenges by overlapping with CFTC oversight.
This lawsuit highlights the ongoing complexities and uncertainties in the regulation of the cryptocurrency market.