SEC Still Thinks XRP Is a Security

According to Bitnominal, a CFTC-regulated digital asset derivatives exchange, the U.S. Securities and Exchange Commission continues to believe that the XRP token is a security. 

Bitnominal recently sued the SEC over the agency's attempts to "overextend" its jurisdiction over futures contracts. 

The exchange argues that the product is already subject to the "exclusive jurisdiction" of the CFTC. 

By trying to overextend its jurisdiction, the SEC" inappropriately duplicates and compounds the regulatory burden" on Bitnomial, the lawsuit says. 

As reported by U.Today, Bitnominal filed a self-certification with the CFTC for enabling the trading of XRP futures on its platform in early August. The move could potentially pave the way for the launch of an XRP ETF in the US. 

Shortly after the filing, however, it was then contacted by the SEC. The agency stated that the listing would violate federal securities laws. The agency argued that XRP futures are subject to the joint SEC and CFTC jurisdiction since they are "security futures."

Bitnominal says that it disagrees with the SEC's view, which is why it is seeking a declaration from the court that XRP futures are not security futures. The company also wants to enjoin the agency from pursuing any enforcement action that would be linked to the contemplated listing of XRP futures. 

As reported by U.Today, Ripple, the company associated with the XRP cryptocurrency, recently hit back at the SEC with a cross-appeal following the SEC's appeal in the case. 

Both Ripple CEO Brad Garlinghouse and Ripple CLO Stuart Alderoty have confidently stated that XRP's legal status will not be challenged by the SEC.