Bitnomial, a crypto derivatives exchange, has made a significant move in the U.S. market with the launch of its XRP futures contract. This marks the first-ever U.S. Commodity Futures Trading Commission (CFTC)-regulated XRP futures product in the country. The exchange has confirmed that its existing clients will have access to this new offering starting March 20, 2025.
The decision to introduce XRP futures comes on the heels of a legal victory for Ripple against the U.S. Securities and Exchange Commission (SEC). Bitnomial had previously sued the SEC over the agency’s jurisdiction claim regarding the XRP futures contracts the exchange had planned to introduce. With the regulatory landscape now clearer, Bitnomial has dropped its lawsuit against the SEC.
Bitnomial’s XRP futures contract is unique in that it is physically settled, meaning that actual XRP will be delivered upon contract expiration rather than cash settlements. The exchange has been working on launching this product since at least October 2024, aligning with a broader trend of bringing more institutional-grade crypto derivatives to market.
New clients can onboard with one of Bitnomial’s three futures commission merchant (FCM) partners: R.J. O’Brien and Associates, Marex Capital Markets, Inc., and Bitnomial Clearing LLC. With CFTC approval secured, Bitnomial’s XRP futures contract is poised to offer a regulated trading option for both institutional and retail traders in the U.S. market.
In light of Ripple’s legal victory and the SEC dropping its appeal, Bitnomial has decided to withdraw its lawsuit against the SEC. This move resolves a months-long regulatory dispute between the exchange and the agency. The SEC had argued that XRP futures constituted securities, requiring Bitnomial to register as a securities exchange before launching the product. Bitnomial contended that compliance was impossible without Ripple registering XRP as a security, which the company had not done.
The SEC’s decision to back down signals a potential easing of regulatory pressure on crypto markets, opening the door for further product approvals like XRP futures in the U.S. This development underscores a broader market trend toward blending digital assets with traditional finance methods.
In conclusion, Bitnomial’s launch of XRP futures with CFTC approval and the withdrawal of its lawsuit against the SEC represent significant steps in the evolution of the U.S. crypto derivatives market. The introduction of physically settled futures contracts reflects a shift toward aligning crypto trading with structured market practices, encouraging traders to adopt clearer hedging strategies. This innovative approach may influence market participation by offering transparent asset valuation and attracting risk-averse investors with clear market signals.