Bitnomial Drops SEC Lawsuit Ahead of XRP Futures Launch in the US

Bitnomial, a Chicago-based crypto exchange, has voluntarily dismissed its lawsuit against the U.S. Securities and Exchange Commission (SEC) as it prepares to launch the first-ever XRP futures contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC). This announcement comes ahead of the highly anticipated XRP futures debut on March 20, 2025.

Bitnomial's Legal Battle with the SEC

Back in October 2024, Bitnomial filed a lawsuit against the SEC after the regulatory agency insisted that the exchange needed to register as a securities exchange before listing XRP futures. The SEC had argued that XRP was a security, and therefore Bitnomial would need to comply with securities laws.

In its statement, Bitnomial confirmed the voluntary dismissal of its case against the SEC, noting that the increasing clarity in regulatory guidance led to the decision. The exchange also emphasized that its XRP futures are regulated by the CFTC and will be "physically settled for real market impact."

XRP Futures Launch

The XRP futures, which will be available for Bitnomial's current users starting March 20, are being hailed as a major milestone for the industry. By securing CFTC approval, Bitnomial is offering an innovative product that allows traders to engage in physically settled futures contracts for XRP. This marks a significant step forward in the growing regulatory framework surrounding cryptocurrency markets in the United States.

“Bitnomial is launching the first-ever CFTC-regulated XRP futures in the US,” the exchange said in a March 19 statement. “Plus, we’ve voluntarily dismissed our case against the SEC as regulatory clarity improves.”

The Ripple Effect: SEC’s Decision on XRP

The timing of Bitnomial's announcement also aligns with recent developments in the legal battle between the SEC and Ripple Labs, the company behind XRP. On March 19, Ripple CEO Brad Garlinghouse revealed that the SEC had decided not to continue its appeal against a key court ruling that deemed XRP not a security in retail sales.

In July 2023, U.S. District Judge Analisa Torres ruled that XRP was not a security when sold to retail investors, although she noted that XRP could be considered a security when sold to institutional investors. This judgment was a significant win for Ripple, but the SEC had initially appealed the decision. The agency’s decision to abandon its appeal paves the way for further clarity on the legal status of XRP.

Regulatory Shifts and Crypto's Future

The dismissal of the lawsuit and the SEC’s recent shift in approach toward crypto regulation signals a broader trend of regulatory change under the Biden administration. Following the resignation of former SEC Chair Gary Gensler in January 2025, the SEC has started to ease its stance on crypto, especially in terms of enforcement actions against firms operating in the space.

Mark Uyeda, who became the acting chair of the SEC after Gensler’s resignation, has indicated that the agency is reconsidering several policies related to cryptocurrency. On March 17, Uyeda flagged plans to scrap a rule proposed by the Biden administration that would tighten crypto custody standards for investment advisers. He also mentioned that the SEC is exploring options to abandon proposed changes that would expand its regulation of alternative trading systems, which would require crypto firms to register as exchanges.

As the regulatory landscape continues to evolve, both Bitnomial’s XRP futures launch and Ripple’s legal victory mark important steps toward greater clarity and legitimacy for cryptocurrency markets in the United States.

Conclusion

Bitnomial’s decision to dismiss its lawsuit against the SEC ahead of its XRP futures launch reflects a changing regulatory environment in the U.S. With the CFTC’s approval and Ripple’s legal victory, it appears that the future for XRP and other cryptocurrencies in the U.S. is becoming more defined. As the industry navigates the evolving regulatory landscape, the introduction of XRP futures could pave the way for more mainstream acceptance and integration of crypto assets into traditional financial markets.