- Bitnomial has dropped its lawsuit against the SEC as it prepares to launch the first-ever CFTC-regulated, physically settled XRP futures in the U.S.
- This decision follows Ripple’s recent legal victory and reflects a shifting regulatory landscape under new SEC leadership.
In a significant move for the crypto industry, Chicago-based exchange Bitnomial has voluntarily dropped its lawsuit against the U.S. Securities and Exchange Commission (SEC) just as it prepares to launch its highly anticipated Ripple (XRP) futures contracts. This marks a major step toward regulatory clarity in the digital asset market, particularly for XRP.
First-Ever CFTC-Regulated XRP Futures
Bitnomial announced on March 19 that its XRP futures contracts, which are physically settled, will be available to its current users starting March 20. The futures are regulated by the U.S. Commodity Futures Trading Commission (CFTC), making them the first of their kind in the United States.
The exchange highlighted its decision to drop the lawsuit against the SEC, stating, “Bitnomial is launching the first-ever CFTC-regulated XRP futures in the US — physically settled for real market impact. Plus, we’ve voluntarily dismissed our case against the SEC as regulatory clarity improves.”
Bitnomial’s Legal Battle with the SEC
The journey to this milestone hasn’t been without hurdles. Bitnomial initially sought approval from the CFTC to list XRP futures in August 2024 through a self-certification process. However, the SEC intervened, arguing that XRP was a security and that Bitnomial needed to register as a securities exchange before offering the product. In response, Bitnomial sued the SEC and its commissioners in October 2024, accusing them of overstepping their jurisdiction.
This move was part of a broader struggle between crypto firms and U.S. regulators over the classification of digital assets. The SEC had been enforcing stringent regulations on crypto under former Chair Gary Gensler’s leadership, often classifying various tokens as securities.
Ripple’s Legal Victory Influences Decision
Bitnomial’s decision to withdraw the lawsuit comes shortly after a positive development for Ripple in its ongoing legal battle with the SEC. On March 19, Ripple CEO Brad Garlinghouse confirmed that the SEC would not proceed with an appeal against a July 2023 ruling that determined XRP is not a security when sold to retail investors.
Judge Analisa Torres had ruled that while XRP was considered a security when sold to institutional investors, it did not meet the same criteria under the Howey test when traded on public exchanges. The SEC’s decision to forgo an appeal signaled a shift in its regulatory approach, potentially easing compliance concerns for crypto firms like Bitnomial.
A Changing Regulatory Landscape
Under new leadership, the SEC has begun rolling back several of its hardline policies on crypto. Acting Chair Mark Uyeda, who took over following Gensler’s resignation in January, has proposed scrapping rules that would have tightened crypto custody standards and expanded regulations on alternative trading systems.
With this shifting regulatory environment, Bitnomial’s decision to drop its lawsuit reflects a strategic move to operate within the evolving framework while pushing forward with innovation. The launch of CFTC-regulated XRP futures could open the door for broader adoption of crypto derivatives in the U.S., setting a precedent for other exchanges looking to expand their offerings.
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