The US SEC has refused to back down on the security status of XRP, despite a court ruling finding that the crypto is “not a security.” Recently, the leading crypto derivatives exchange, Bitnomial has sued the agency over its claims that the crypto’s futures are “security futures”. Meanwhile, this development comes as Ripple has filed a cross-appeal in the ongoing legal battle between the blockchain firm and the US SEC.

US SEC Reiterates Stance On XRP Security Status

Bitnomial has sued the US SEC over its classification of XRP Futures as “Security Futures”. In its recent filing, the top crypto derivatives exchange highlighted that Ripple’s native crypto is already regulated by the Commodity Futures Trading Commission (CFTC). It accused the agency of overreaching its authority, which echoed the sentiment of many in the crypto sector.

Besides, the lawsuit claims that the agency’s demand for Bitnomia to register as a securities exchange is unreasonable because Ripple has not registered the token as a security. Commenting on the matter, pro-XRP lawyer Bill Morgan has slammed the agency’s approach in the case.

He said that the agency used its summary judgment briefs from the Ripple SEC case to justify its stance. However, Morgan noted that the agency had overlooked the fact that the court rejected its argument that all XRP sales were securities and found the token itself to be non-security.

Meanwhile, the broader crypto community sees this legal push of the agency as a determination to control digital assets despite increasing resistance. However, Bitnomial in its recent filing stressed that the agency’s actions highlight the regulatory burden already placed on the exchange by the CFTC.

Ripple Cross-Appeal Sparks Discussions

Amid the US SEC’s continued push claiming XRP is a security, the crypto community remains on edge. It also sparked discussions if the agency would challenge the court’s decision in its appeal to the appellate court.

However, Ripple has recently filed a cross-appeal in the case as a response to the agency’s ongoing legal pressure. In July 2023, Judge Torres ruled that the crypto sold on secondary markets was not a security, a decision that was lauded by the broader crypto market.

Despite that, the latest move by the US SEC has sparked discussions. Besides, it also fueled concerns over the agency’s potential motive behind extending the already long-running high-profile case.

Amid recent developments, the court has processed the paperwork, issuing a notice to the attorney regarding a deficient appeal. The appeal record has been transmitted to the US Court of Appeals (USCA), with the appeal fee paid.

Notably, the cross-appeal signals Ripple’s determination to defend its stance on the crypto’s status, setting the stage for a prolonged and intense legal showdown. However, it appears that the crypto market enthusiasts have lauded the latest cross-appeal and Bitnomial’s move to sue the US SEC.

As of writing, XRP price soared 2.4% and traded at $0.5378, while its trading volume rose 55% to $1.31 billion. The crypto has touched a high of $0.5432 in the last 24 hours. Furthermore, the crypto’s Futures’ Open interest jumped 4% to $713.26 million at the same time, indicating growing confidence of the market participants towards the crypto.

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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.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.