Bitnomial Exchange Files Suit to Protect Futures Markets from SEC Overreach
CHICAGO— October 10, 2024 – Bitnomial, Inc. (“Bitnomial”), a digital asset derivatives exchange company that owns CFTC-regulated exchange, clearinghouse, and brokerage subsidiaries, today announced its exchange subsidiary has filed suit against the U.S. Securities and Exchange Commission (“SEC”) in response to an effort by the SEC to overextend its jurisdiction to digital asset derivatives. The SEC asserts jurisdiction over a product that Bitnomial Exchange, LLC (“Exchange”) plans to list, the XRP US Dollar Futures contract (“XRP Futures”), which is regulated by the Commodity Futures Trading Commission (“CFTC”) and not within the SEC’s statutory authority.
Bitnomial plans to introduce physically delivered XRP Futures, the first among other planned digital asset futures, on Bitnomial's US regulated derivatives Exchange. Bitnomial Exchange self-certified XRP Futures with the CFTC on August 9, 2024. Thereafter, the SEC contacted Bitnomial Exchange about the contract, contending that the derivative is a security future, and that the SEC has joint jurisdiction over it.
Given the recent landmark determination by the Southern District of New York that XRP is not inherently a security and was not a security when it was traded on the secondary market, Bitnomial Exchange is well situated to request a court determination that XRP Futures are not security futures. Despite their recent loss in court, the SEC still contends that XRP is a security.
Bitnomial is seeking a formal judgment from the court to protect futures markets, the CFTC’s jurisdiction, and participants from the SEC’s overreach. This judgment would be an important milestone and help clarify regulatory jurisdiction in the digital asset derivative space. Importantly, Bitnomial Exchange has not yet listed XRP Futures and has not been accused of any wrongdoing by the SEC.
The filing is available on the Bitnomial Exchange website
About Bitnomial, Inc.
Bitnomial, Inc. is a digital asset derivatives exchange company that owns and operates US CFTC-regulated exchange (DCM), clearinghouse (DCO), and brokerage (FCM) subsidiaries. Bitnomial offers the Bitcoin Complex® comprising physically delivered Bitcoin Futures, Options, Deci Futures, and Hashrate Futures.
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M Group Strategic Communications (for Bitnomial)