According to the lawsuit file, the SEC believes that XRP is a financial security and requires Bitnomial to register as a national securities exchange.
The cryptocurrency derivative exchange Bitnomial has sued the SEC, Chairman Gary Gensler, and four other commissioners, alleging that the agency has "overstepped" its authority over the company's XRP Futures product.
According to the documents filed with the court on Thursday, Bitnomial claims that the SEC has declared that the company's unlisted XRP Futures product violates federal securities laws, as it views XRP as an investment contract. The agency requires this product to be regulated by both the SEC and the CFTC.
Bitnomial argues that the SEC has forced the company to comply with additional requirements for XRP Futures, even though the product has already been self-certified by the CFTC. One of these requirements includes registering as a national securities exchange under the SEC's supervision.
Bitnomial also claims that the SEC has prevented the company from listing its XRP futures contract. According to SEC regulations, the issuer of the underlying security must register with the SEC before a securities futures contract can be listed.
"The SEC knows that XRP, in its view a underlying security, is not registered. Furthermore, Bitnomial is not the issuer of XRP and, even if it wanted to, does not have the ability to register XRP."
Bitnomial also points to the Southern District of New York court's ruling that rejected the SEC's view that XRP is a security when traded on the secondary market.
The legal dispute between Ripple and the SEC over XRP is ongoing. Earlier this month, the SEC said it would appeal to the Second Circuit Court of Appeals. Yesterday, Ripple filed a cross-appeal to the same court.
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The article Bitnomial sues SEC for calling XRP Futures a security first appeared on CoinMoi.
