Bitnomial, a leading cryptocurrency derivatives platform, is set to launch its CFTC-approved XRP futures contracts on March 20th. In a surprising turn of events, the firm has also decided to drop its lawsuit against the US Securities and Exchange Commission (SEC).
The decision to withdraw the lawsuit was influenced by the SEC’s recent move to abandon legal action against Ripple, the company behind XRP. This development signals a significant shift in the regulatory landscape for digital assets.
According to the official announcement on March 19th, Bitnomial’s XRP futures contracts will be physically settled, offering institutional and retail investors a regulated trading instrument to gain exposure to XRP. Clients of Bitnomial will have immediate access to these futures contracts upon launch, while prospective clients can onboard through Futures Commission Merchant (FCM) partners such as R.J. O’Brien and Associates, Marex Capital Markets, and Bitnomial Clearing.
This launch comes at a time when the crypto sector is experiencing increased regulatory clarity, thanks to recent legal developments. One such milestone was Ripple’s victory against the SEC in a long-standing legal battle over XRP’s classification. The SEC had accused Ripple of conducting unregistered securities sales totaling $1.3 billion, but a key ruling in August 2024 determined that XRP is not a security when traded on public exchanges. While Ripple was ordered to pay $125 million in penalties, significantly less than the SEC’s initial demand, the company is still appealing to avoid the fine and establish XRP’s status as a non-security for institutional sales.
In light of these regulatory advancements, Bitnomial has decided to end its lawsuit against the SEC. The lawsuit, filed in October 2024, revolved around jurisdictional disputes regarding futures contracts based on XRP’s price. Bitnomial had initially applied for its XRP futures product following the federal ruling that XRP is not a security, challenging the SEC’s oversight of XRP derivatives. However, with the regulatory environment becoming more defined and transparent, the firm saw fit to dismiss the case.
Overall, the launch of XRP futures contracts by Bitnomial and the resolution of legal disputes between Ripple and the SEC mark a significant step towards regulatory clarity and legitimacy in the crypto space. Investors can now access a regulated trading instrument for XRP, paving the way for increased institutional participation and mainstream adoption of digital assets.