Leading crypto exchange Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), contesting the agency's decision to classify XRP as a security.

Bitnomial's Grounds for Lawsuit

Bitnomial argues that XRP is already classified as a commodity under the Commodity Futures Trading Commission (CFTC) and should not be regulated by the SEC. The claims were submitted to an Illinois federal court as part of their challenge to the SEC's jurisdiction over digital assets.

SEC Tensions with Crypto Firms

Bitnomial's dispute with the SEC is part of a broader trend of rising tensions. Crypto entities like Crypto.com, Ripple Labs, Binance, and Coinbase also face legal battles with the SEC. Leaders assert that the SEC is overstepping its bounds, leading to inconsistent regulations that hinder business operations.

SEC's Broader Enforcement Actions

On the same day Bitnomial filed its lawsuit, the SEC charged Cumberland for operating without registration. These events are accompanied by criticism of the SEC for a lack of clear guidance on cryptocurrencies. The SEC's 'enforcement through policy' approach is viewed as ineffective by many.

The disputes between crypto firms and the SEC highlight the need for clear, consistent regulation for the cryptocurrency market. Anticipated legal precedents in the coming months could shape the future of the crypto industry.