Bitnomial, a Chicago-based cryptocurrency exchange, has withdrawn its lawsuit against the U.S. Securities and Exchange Commission (SEC) as it prepares to launch the first Commodity Futures Trading Commission (CFTC)-regulated XRP futures contract in the United States. The company announced the move on March 19, citing improved regulatory clarity following a landmark legal development for Ripple Labs.
Bitnomial sued the SEC in October, challenging the agency’s authority over its proposed XRP futures product. The exchange argued that the SEC was overstepping its jurisdiction by insisting that XRP futures were securities and demanding that Bitnomial register as a securities exchange before listing them. With the SEC dropping its appeal in its case against Ripple, Bitnomial sees a path forward under CFTC oversight.
“With the SDNY determination that XRP is not a security in secondary offerings, XRP futures do not qualify as securities futures and are therefore solely within the jurisdiction of the CFTC,“
Bitnomial Exchange President Michael Dunn said in a statement.
“In light of the SEC dropping their appeal of that decision, Bitnomial Exchange is planning on listing physical XRP futures tomorrow morning.”
A Legal Battle Ends as a New Market Opens
Bitnomial’s lawsuit was filed on October 10 in the U.S. District Court for the Northern District of Illinois, accusing the SEC of asserting unlawful authority over its XRP futures offering. The regulatory dispute escalated after the exchange filed a self-certification with the CFTC in August 2024 to list XRP futures contracts. The SEC intervened, blocking the move and demanding compliance with federal securities laws.
The case was dismissed just hours after Ripple announced that the SEC had dropped its appeal of a 2023 court ruling by Judge Analisa Torres. That ruling found that XRP was not a security when sold in retail transactions, though it could be classified as one when offered to institutional investors.
The SEC originally sued Ripple in December 2020, accusing it of illegally raising $1.3 billion through unregistered securities sales.
Ripple CEO Brad Garlinghouse confirmed on March 19 that the SEC was no longer pursuing the case. The agency’s stance on crypto regulation has softened in recent months under acting chair Mark Uyeda, who took over after former SEC Chair Gary Gensler’s departure in January.
Uyeda has initiated a review of SEC policies that targeted digital assets, including proposed rules on crypto custody and alternative trading systems.
Bitnomial’s XRP futures product, which will launch on March 20, is physically settled, meaning contracts will be settled in actual XRP rather than cash. This differs from many crypto derivatives products, which often settle in fiat currency. The company emphasized in a social media post that its product is “physically settled for real market impact.”
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