By Key Points
- SEC continues to classify XRP as a security, facing backlash.
- Bitnomial files lawsuit accusing SEC of regulatory overreach.
- Ripple launches cross-appeal against SEC’s ongoing legal efforts.
- XRP price rises 2.9%, reflecting market confidence in Ripple’s position.
The ongoing controversy over XRP security status has taken a new turn, as crypto derivatives exchange Bitnomial has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC).
Despite a historic ruling in 2023, which declared XRP a non-security when traded on secondary markets, the SEC continues to insist that XRP qualifies as a security.
Bitnomial’s lawsuit, filed on Thursday, October 11, 2024, in Illinois federal court, accuses the SEC of overstepping its authority by blocking the listing of XRP futures.
The exchange argues that XRP is already classified as a commodity, and the SEC’s insistence on regulating it as a security imposes unnecessary burdens.
Bitnomial claims this overreach is preventing them from launching their XRP futures product unless they register as a national securities exchange.
The dispute over XRP security status is reigniting concerns over how digital assets are regulated, and Bitnomial’s legal battle could set an important precedent for the cryptocurrency industry.
SEC Still Considers Ripple’s XRP A Security Despite Monumental Court Ruling, New Bombshell Lawsuit Reveals https://t.co/wwpqRdBpt1
— Shaun Weaver (@ShaunWBeringsea) October 11, 2024
Ripple’s Legal Battle Over XRP Security Status Continues
The XRP security debate first erupted in December 2020 when the SEC sued Ripple for allegedly raising $1.3 billion through the unregistered sale of XRP.
Ripple achieved a partial victory in July 2023, when federal Judge Analisa Torres ruled that XRP was not a security when sold on exchanges to retail investors. However, the court found that Ripple had violated securities laws in institutional sales of the token.
Despite this win, the SEC remains adamant about XRP’s security status and has filed an appeal to reverse the decision.
Ripple responded with its own cross-appeal, aiming to solidify its legal victory. Ripple’s Chief Legal Officer, Stuart Alderoty, stressed that the cross-appeal is necessary to ensure nothing is left unresolved in the ongoing case.
Bitnomial’s lawsuit against the SEC amplifies the growing uncertainty around XRP security status. The exchange claims that Ripple has not registered XRP as a security, making it impossible for Bitnomial to comply with the SEC’s requirements to list XRP futures.
Market Reaction: XRP Price Sees Gains Amid Legal Moves
Despite the legal drama surrounding XRP security classification, the token’s price has been resilient.
Following Ripple’s announcement of its cross-appeal, XRP’s value rose by 2.9%, trading at $0.5396 at the time of writing. This upward price movement reflects optimism in the market that Ripple will ultimately prevail in its legal battle with the SEC.
The outcome of both Bitnomial’s lawsuit and Ripple’s cross-appeal could have far-reaching effects on XRP security classification and the broader cryptocurrency industry.
For now, investors and industry players alike are watching closely as these legal battles unfold.
