The cryptocurrency exchange Bitnomial has unexpectedly withdrawn its lawsuit against the US Securities and Exchange Commission (SEC), while also announcing the launch of the first XRP futures in the US under the supervision of the Commodity Futures Trading Commission (CFTC). This move comes after regulatory clarity has gradually increased, especially following positive developments in Ripple's lengthy lawsuit with the SEC.
Bitnomial Officially Launches XRP Futures Contract
#Bitnomial , a Chicago-based crypto exchange, just announced it will offer XRP futures for existing clients starting today. This is a CFTC-regulated futures contract, allowing traders to bet or hedge risks on XRP prices in the future, provided they receive the actual asset when the contract expires.
Bitnomial's decision comes right after Ripple made significant progress in its lawsuit with the SEC, although the agency has not made an official statement on whether XRP is a security.
Bitnomial Unexpectedly Withdraws Lawsuit Against the SEC
In October 2024, Bitnomial filed a lawsuit against the SEC after the agency blocked the exchange from listing the futures contract. The SEC argued that XRP is a type of security, thus Bitnomial needed to register as a securities exchange under US law.
However, Bitnomial disagrees with this view, arguing that XRP – the world's third-largest cryptocurrency – should not be classified as a security and that the SEC has overstepped its authority.
Now, as the SEC seems to have stepped back in the lawsuit with Ripple, Bitnomial announces the withdrawal of its lawsuit, arguing that the legal framework has become clearer, allowing them to proceed with the launch of XRP futures without obstacles.
Ripple – XRP and the Prolonged Struggle with the SEC
The legal battle between Ripple Labs and the SEC began in December 2020 when the SEC accused Ripple of selling XRP as a security without registration, violating US securities laws.
The SEC's position: XRP is a type of security and must comply with regulations like stocks and bonds.
Ripple's rebuttal: XRP is an independent digital asset, not a security.
Lengthy lawsuit with many important rulings:
✅ July 2023: The court ruled that XRP is not a security when sold to retail investors, but selling to institutional investors is considered a violation of securities laws.
✅ August 2024: Ripple was fined $125 million for violations related to selling XRP to institutional investors, a much lower penalty than the initial $2 billion demand from the SEC.
This lawsuit has a significant impact on how the US classifies digital assets, especially under the leadership of former SEC chairman Gary Gensler, who took a hard stance on crypto.
SEC Surrenders – XRP Price Soars
On Wednesday, Ripple CEO Brad Garlinghouse confirmed that #SEC decided not to continue appealing the previous ruling. He called it "a belated surrender by the SEC," indicating that the agency is losing its grip on XRP.
Immediately after this news, the price of XRP rose by 14%, reaching $2.55, reflecting market optimism about the future of XRP and the crypto market in general. According to CoinGecko, XRP is currently trading at around $2.50, up 7.3% in 24 hours.
What Does This Move Mean for Crypto?
🔹 Bitnomial paves the way for XRP futures in the US: With the first XRP futures contract regulated by the CFTC, institutional investors can access XRP in a more legal and transparent manner.
🔹 Ripple gradually escapes legal pressure: The SEC's decision to withdraw its appeal gives XRP a better chance of being recognized more widely in the US market.
🔹 Crypto increasingly has a clearer legal framework: Bitnomial's withdrawal of its lawsuit against the SEC demonstrates that some legal barriers with crypto are gradually being removed, providing a foundation for stronger market growth.
However, caution is still needed!
Although XRP and the crypto market are showing positive signals, regulatory frameworks still have many uncertainties. Investors need to carefully consider before making trading decisions.