Crypto exchange Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) challenging the classification of XRP as a security.

Bitnomial's Legal Position

Bitnomial argues that XRP is already classified as a commodity by the Commodity Futures Trading Commission (CFTC), and thus should not fall under the SEC's regulatory umbrella. The exchange stated in its filing: "Bitnomial disagrees with the SEC’s view that XRP is an investment contract and, therefore, a security, and that XRP Futures are thus security futures."

Escalating Conflicts Between Crypto Firms and SEC

Bitnomial’s legal battle is part of a larger trend of escalating tensions between the SEC and various crypto entities. Recently, Crypto.com also initiated legal action against the SEC, claiming the agency overstepped its authority. Ripple Labs, Binance, and Coinbase are among the companies embroiled in legal disputes with the SEC.

SEC's Broader Enforcement Actions

On the same day as Bitnomial's lawsuit, the SEC charged Cumberland with operating as an unregistered dealer since March 2018. Jorge G. Tenreiro, acting chief of the SEC's crypto assets and cyber unit, stated: "The federal securities laws require all dealers in all securities to register with the Commission."

The confrontation between crypto companies and the SEC continues, highlighting the need for clarity and consistency in digital asset regulation.