Bitnomial Exchange is taking legal action against the U.S. Securities and Exchange Commission (SEC). They claim the SEC is stepping beyond its authority when it comes to digital assets.
This case is about an XRP futures contract. Bitnomial argues that this contract is already regulated by the Commodity Futures Trading Commission (CFTC).
In their filing with the U.S. District Court for the Northern District of Illinois, Bitnomial insists that the futures should fall solely under the CFTC's jurisdiction. They believe that the SEC's involvement would create an unnecessary regulatory burden for their company.
On August 9, Bitnomial confirmed that the XRP futures comply with CFTC regulations. They stated, “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.”
This lawsuit follows a similar action by Crypto.com. Earlier this week, Crypto.com indicated that their legal move was in response to an SEC warning about a potential enforcement action. They described it as “a warranted response to the SEC's regulation by enforcement regime which has hurt more than 50 million American crypto holders.”
Bitnomial and Crypto.com are standing up for their rights in a rapidly changing regulatory landscape. Their actions reflect the ongoing challenges faced by cryptocurrency exchanges in the U.S.