CFTC-Regulated XRP Futures Launch in US
First CFTC-Regulated XRP Futures Debut in the US
Bitnomial, a digital asset derivatives exchange, has launched the first-ever Commodity Futures Trading Commission (CFTC)-regulated XRP futures contracts in the United States. This follows the company's voluntary dismissal of its lawsuit against the Securities and Exchange Commission (SEC).
Key Takeaways
- Bitnomial's launch marks the first CFTC-regulated XRP futures in the US.
- These physically settled futures are backed by actual XRP, enhancing market integrity.
The lawsuit withdrawal comes after Ripple CEO Brad Garlinghouse announced the SEC's decision to drop its appeal against Ripple. This effectively confirms XRP is not currently considered a security.
Bitnomial's October lawsuit challenged the SEC's classification of XRP futures as 'security futures.' The firm argued that XRP futures don't meet the definition and shouldn't require additional SEC regulations. With the SEC's shifting crypto policies, Bitnomial believes litigation is no longer necessary. They emphasize the importance of regulatory certainty for innovation in the digital asset space.
These new futures contracts offer traders a regulated way to gain XRP exposure, with contracts settled using actual XRP. This ensures true price discovery and market integrity, as stated by Bitnomial CEO Luke Hoersten.
“Bitnomial is committed to building a regulated market infrastructure that supports real asset ownership in digital asset markets. Physically settled futures ensure that every contract is backed by actual XRP, reinforcing true price discovery and market integrity.”
The Chicago-based Bitnomial also offers products for other digital assets, including Solana, Avalanche, Chainlink, Bitcoin Cash, Litecoin, Ethereum, Polkadot, and Hedera. Ripple previously invested $25 million in Bitnomial, funding the development of their Botanical platform for perpetual futures, traditional futures, and options. Bitnomial also plans to use Ripple's RLUSD stablecoin for perpetual futures settlements.
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