The post SEC Reaffirms XRP as a Security in New Legal Twist appeared on BitcoinEthereumNews.com.

A new lawsuit by derivatives trading platform Bitnomial shows that the SEC moved to restrict it from issuing futures contracts for XRP, alleging it’s a security. The SEC’s encroachment came despite a direct ruling that XRP wasn’t a security and the agency’s commitment not to appeal the ruling. When Judge Analisa Torres issued the final ruling that ended the multi-year legal battle between the SEC and Ripple over the security status of XRP, it appeared like the agency’s assault on the XRP ecosystem had finally ended. The regulator even committed not to appeal the ruling, giving XRP holders the assurance they needed to invest in their favourite token. However, the animosity from Gary Gensler didn’t end there, as a new lawsuit has revealed. Bitnomial, a crypto derivatives exchange licensed by the CFTC in 2020 to serve US customers, filed the lawsuit in the Northern District of Illinois. It all stems from the exchange’s filing to list an XRP US Dollar Futures contract in August. Since XRP had been exempted by Judge Torres from securities classification, Bitnomial only applied for certification for the new product from the CFTC, the agency that regulates futures in the US. However, Gensler’s army was quick to swoop in. As the Thursday filing revealed, the SEC claimed that the new XRP futures contract would violate federal securities laws as they are “security futures.” To list the new product, Bitnomial would have to comply with a host of additional SEC requirements, including registering as a national securities exchange, which is a tedious and costly process. Bitnomial notes: The SEC takes the view that the underlying asset, XRP, is an investment contract and, therefore, transactions in XRP constitute a security under the Securities Exchange Act of 1934. Bitnomia further noted that it disagrees with this view, as does…

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Filed under: News - @ October 11, 2024 9:10 pm