TechFlow news, October 11 — Cryptocurrency derivatives trading platform Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), challenging the SEC's regulatory authority over XRP futures contracts. According to court filings, shortly after the lawsuit was submitted, the SEC contacted Bitnomial, asserting that XRP futures are "security futures" and therefore subject to joint regulation by the SEC and the Commodity Futures Trading Commission (CFTC). The SEC stated that if Bitnomial proceeds with listing XRP futures, it would violate federal securities laws. Additionally, the SEC demanded that Bitnomial meet additional requirements before listing, including registering as a national securities exchange. The complaint notes that the SEC views XRP’s underlying asset as an investment contract, and thus XRP trading constitutes securities trading under the Securities Exchange Act. Bitnomial disputes this position, objecting to the SEC’s classification of XRP as an investment contract and a security, and maintains that XRP futures should not be considered security futures.
