Bitnomial, a U.S.-based crypto exchange, has filed a lawsuit against the SEC, claiming that the financial regulator is overstepping its jurisdiction over digital assets.
This lawsuit follows a similar one filed earlier this week by Singapore-based crypto exchange and brokerage company Crypto.com. While both lawsuits share similar goals, Bitnomial’s filing with the U.S. District Court for the Northern District of Illinois specifically argues that XRP is not an investment contract.
What Is Bitnomial Contending?
According to Bitnomial’s filing, they applied for “self-certification” with the Commodity Futures Trading Commission (CFTC). However, after the filing, they claim officials from the SEC contacted them to discuss the potential listing. Notably, Bitnomial has not yet listed XRP futures.
The crypto exchange claims that the SEC warned them that listing XRP futures would violate federal securities laws. Bitnomial has already agreed to comply with the CFTC’s regulations, as required before listing any commodity futures. However, the SEC insists that the exchange must meet additional SEC requirements before listing XRP futures.
This means that to list XRP futures, Bitnomial would have to register as a “national securities exchange (NSE)” and submit filings under the SEC’s jurisdiction.
Through its Thursday filing, Bitnomial seeks the court’s intervention, claiming that the SEC is overstepping its authority. This is similar to what other crypto exchanges, like Crypto.com and Kraken, have argued in their recent filings.
Recently, the SEC also decided to appeal a US court’s judgement which had cleared Ripple Labs’ XRP as not an investment contract. Following the SEC’s appeal, XRP price tanked more than 15%.
Read More: XRP Price on The Verge Of A Breakout?
Resentment Against SEC and Gary Gensler Peaks
The crypto community has become increasingly vocal in its opposition to SEC Chair Gary Gensler. Many claim Gensler is targeting crypto businesses while shielding traditional investment companies.
Leading this opposition is Donald Trump, who has stated that if re-elected, he would fire Gensler on his first day in office.
Gensler, however, continues to stand firm in his belief that crypto assets are securities and lack intrinsic value. But with digital assets growing in popularity and receiving open support from a former U.S. president and current Republican presidential candidate, more businesses and individuals are speaking out against the SEC’s policies on crypto.
