Bitnomial Exchange Sues SEC, Challenging Agency's Authority Over XRP Futures

October 11, 2024

"Bitnomial Exchange, LLC (Bitnomial), a designated contract market registered with the Commodity Futures Trading Commission (CFTC), has launched a legal offensive against the US Securities and Exchange Commission (SEC), challenging the agency's attempt to exert authority over the futures exchange's self-certified XRP futures contracts.

The lawsuit, filed by Katten on behalf of Bitnomial in the US District Court for the Northern District of Illinois, seeks declaratory and injunctive relief against the SEC's attempt to classify XRP futures as security futures. The futures exchange contends that the SEC's position creates an untenable situation, forcing Bitnomial to choose between abandoning its plans to list XRP futures or risking enforcement action by proceeding.

The lawsuit details Bitnomial's efforts to list XRP futures contracts through the CFTC's self-certification process. On August 9, Bitnomial filed a self-certification with the CFTC to trade XRP futures on its exchange."

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About Bitnomial, Inc.

Bitnomial, Inc., headquartered in Chicago, is a derivatives exchange company that owns and operates U.S. CFTC-regulated exchange (DCM), clearinghouse (DCO), and clearing brokerage (FCM) subsidiaries. Bitnomial offers leveraged spot, perpetuals, futures, options, and prediction markets on a single unified exchange and clearinghouse with digital asset margin and settlement capabilities.

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Signing up with Bitnomial, Inc. requires additional verification with an FCM to trade futures. Futures accounts are offered by Bitnomial Clearing, LLC, a CFTC-registered FCM and NFA member. Trading in futures involves substantial risks. You should only trade in financial products that you are familiar with and understand the associated risks, and after carefully considering whether such trading is suitable in light of your investment experience, financial position, and investment objectives. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. See Bitnomial entity affiliation and registration disclosures and FCM financial and risk disclosures.