Bitnomial Drops SEC Lawsuit, Moves Forward with XRP Futures Launch

Crypto exchange Bitnomial has voluntarily dismissed its lawsuit against the U.S. Securities and Exchange Commission (SEC) ahead of launching its Ripple XRP futures in the United States. The Chicago-based firm announced on March 19 that its XRP futures, regulated by the U.S. Commodity Futures Trading Commission (CFTC), will be available starting March 20.

XRP Futures Approved Under CFTC Regulation
Bitnomial emphasized that its XRP futures contracts are the first-ever CFTC-regulated offerings in the U.S., physically settled to ensure real market impact. The firm had initially filed for self-certification with the CFTC in August 2024 but faced opposition from the SEC, which argued that the exchange must register as a securities exchange before listing the contracts.

Despite its earlier legal battle, Bitnomial has now withdrawn its lawsuit, stating that “regulatory clarity improves.” The company had sued the SEC and its five commissioners in October 2024, alleging the agency was overstepping its authority by classifying XRP as a security.

Ripple’s Ongoing Legal Wins Against the SEC
Bitnomial’s move coincides with Ripple CEO Brad Garlinghouse’s March 19 announcement that the SEC will not pursue an appeal against a prior ruling that found XRP was not a security for retail sales. The legal dispute, which began in December 2020, revolved around the SEC’s claims that Ripple Labs illegally sold XRP as an unregistered security.

A pivotal judgment from Judge Analisa Torres on July 13, 2023, ruled that while XRP is not a security for retail investors, it meets the Howey test criteria when sold to institutional investors. The SEC had initially appealed this decision but has since backed down.

SEC’s Crypto Enforcement Eases Under New Leadership
The dismissal of Bitnomial’s case comes amid a shift in the SEC’s approach to crypto regulation. Since SEC Chair Gary Gensler resigned on January 20, the agency, now led by acting chair Mark Uyeda, has signaled a softer stance on crypto enforcement. Uyeda announced plans on March 17 to scrap a Biden-era proposal that would tighten crypto custody standards for investment advisers.

Additionally, in a March 10 speech, Uyeda revealed he had asked SEC staff to explore abandoning parts of proposed regulations that would require crypto firms operating alternative trading systems to register as securities exchanges.

With regulatory uncertainty easing, Bitnomial is moving forward with its XRP futures launch, marking a significant step in the evolving relationship between crypto exchanges and U.S. regulators.