The US Securities and Exchange Commission (SEC) is facing new legal trouble this October. Chicago-based derivatives exchange Bitnomial has filed a lawsuit against the agency.
Bitnomial says it wants to protect the crypto futures market from the SEC’s overreach.
Bitnomial Files Lawsuit Without Facing Charges
In a statement, Bitnomial said the SEC contacted them about the futures contracts. The SEC claims that derivatives are security futures and under its control.
But Bitnomial self-certified XRP Futures with the CFTC on August 9, 2024. The exchange hasn’t listed XRP Futures yet and hasn’t been accused of any wrongdoing by the SEC.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
Bitnomial argues that the SEC is placing additional legal burdens on them. By taking the initiative to sue, Bitnomial is seeking a formal court ruling to clear the way for trading XRP Futures.
“With the recent decision from the Southern District of New York stating that XRP isn’t inherently a security, Bitnomial is in a good position. We will ask the court to rule that XRP Futures aren’t security futures. Despite its recent court loss, the SEC still claims XRP is a security,” Bitnomial said.
The exchange sees bigger implications. The case could affect more than just XRP. It could shape the entire crypto market.
“Setting this precedent isn’t just about XRP. It’s about all digital assets,” Bitnomial CEO Luke Hoersten said.
SEC Faces Wave of Lawsuits
Bitnomial isn’t the only company suing the SEC this month. On October 8, 2024, Crypto.com also filed a lawsuit after getting a Wells Notice from the SEC. Ripple, despite having the upper hand, has also filed a cross-appeal.
Brendan Malone, policy manager at Paradigm, reported a rise in legal actions by the SEC under Gary Gensler’s leadership.
Read more: Who Is Gary Gensler? Everything To Know About the SEC Chairman
These lawsuits are costing the US government in attorney fees and other expenses. Moreover, reports suggest that legal disputes in the industry could cost crypto firms up to $19 billion in 2024.
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