Bitnomial set to launch CFTC-approved XRP futures on March 20, withdraws SEC lawsuit
Bitnomial will launch its CFTC-approved XRP futures contracts on March 20 and drop its lawsuit against the US Securities and Exchange Commission.
The firm said its decision to withdraw its lawsuit was driven by the regulators move to abandon legal action against Ripple.
According to the March 19 announcement, the contracts will be physically settled, providing a new regulated trading instrument for institutional and retail investors exposure to XRP.
Regulatory improvement
Bitnomial clients will gain access to XRP futures immediately at launch. In contrast, prospective clients can onboard through Futures Commission Merchant (FCM) partners, including R.J. OBrien and Associates, Marex Capital Markets, and Bitnomial Clearing.
The introduction of these contracts follows the broader trend of increased regulatory clarity in the crypto sector, particularly as legal developments reshape the landscape for digital assets.
One such development was Ripples decisive victory against the SEC. The regulator formally dropped its appeal in the long-standing legal battle over XRPs classification. Ripple CEO Brad Garlinghouse confirmed the resolution on March 19, calling it a significant moment for the industry.
Initiated in December 2020, the case accused Ripple of conducting unregistered securities sales worth $1.3 billion. A key ruling in August 2024 determined that XRP is not a security when traded on public exchanges, although penalties were upheld for institutional sales.
The ruling ordered Ripple to pay $125 million in penalties, significantly lower than the SECs original demand of nearly $2 billion.
The regulator and Ripple appealed the decision, with the SEC ultimately deciding to let go of its appeal. However, Ripples appeal to avoid the fine and clear XRPs status as security on institutional sales is still up.
Bitnomial ends lawsuit against SEC
In tandem with the launch of its XRP futures, Bitnomial announced it has voluntarily dropped its lawsuit against the SEC.
The firm had sued the regulator in October 2024 over jurisdictional disputes concerning futures contracts based on XRPs price.
Bitnomial initially filed for its XRP futures product in August 2024 after the federal ruling that XRP is not a security, challenging the SECs stance on overseeing XRP derivatives.
The firms decision to dismiss its case is based on the shifting regulatory environment and improving clarity regarding digital asset classification.
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Text source: CryptoSlate
