Why SEC Challenges XRP Futures In Bitnomial Case?

Highlights

Pro-XRP lawyer explains US SEC's potential behind targeting XRP in Bitnomial case.
Ripple's close tie with Bitnomial could be one of the potential reasons behind the move.
Ripple CLO Stuart Alderoty recently revealed future plans in the XRP lawsuit.

The Ripple Vs SEC battle has further intensified with Bitnomial revealing key updates recently. Notably, the Bitnomial exchange has recently sued the US Securities and Exchange Commission (SEC) as the agency claims that the XRP Futures are “Security Futures.” However, amid this, a pro-XRP lawyer has shed light on the potential reasons why the agency has continued its harsh stance against XRP in the Bitnomial case.

Why SEC Targets XRP Futures In Bitnomial Case?

Bitnomial has continued to advance with its strategic plan despite the latest legal hurdles and the ongoing tensions in the Ripple Vs SEC case. In a recent announcement, the exchange revealed the upcoming launch of its perpetual futures platform, Botanical.

The platform, backed by Ripple with a $25 million funding round, aims to provide a flurry of trading options like futures, crypto derivatives, and others, to users. Besides, the firm also said that Ripple CEO Brad Garlinghouse will join its board, which has further fueled speculations in the crypto market.

Meanwhile, Ripple’s involvement in the funding has further fueled discussions about the SEC’s motives in targeting Bitnomial. Some critics argue that the agency’s scrutiny of Bitnomial’s XRP futures is a calculated move to undermine Ripple’s growing influence.

One social media user pointed out that every company working with XRP seems to be under the SEC’s radar. His comment reflects the agency’s actions, which may be more about hindering Ripple’s progress than protecting investors.

However, pro-XRP lawyer Bill Morgan weighed in on this viewpoint. He highlighted that Ripple’s backing of Bitnomial has created a strong incentive for the crypto giant to support Bitnomial in its legal battle. He noted that the SEC’s aggressive stance could be part of a broader strategy to stifle Ripple’s growth through associated businesses like Bitnomial.

What’s Next In XRP Lawsuit?

The Bitnomial case has gained more attention as the US SEC has recently filed an appeal in the XRP lawsuit. The Ripple Vs SEC case was one of the high-profile and long-running legal battles in the crypto sector.

Amid this, the recent appeal by the agency has sparked discussions in the market, with many slamming the SEC for extending the case. However, Ripple has also filed a cross-appeal, indicating its confidence in the ongoing legal fight. Besides, Ripple CLO has also commented on the XRP lawsuit and its potential future developments.

Meanwhile, amid this, Grayscale has filed to covert its Solana, XRP, and AVAX Trust into ETF offerings. This move, despite the US SEC targeting Ripple’s native crypto, showcases the firm’s confidence in the blockchain firm and its native crypto. Besides, Ripple has also revealed major updates on its stablecoin RLUSD, which have fueled speculations in the market.

However, XRP price was down 1.5% today to $0.5384, with its trading volume soaring 9% to $1.22 billion. The crypto has touched a high of $0.5475 and a low of $0.5327 in the last 24 hours. Furthermore, XRP Futures Open Interest also fell 2% to $747.94 million.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

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