Outside Source
Last updated:
Journalist
Hassan Shittu
Journalist
Hassan Shittu
Key Takeaways:
- The product ties futures contracts directly to token performance for more accurate risk assessments.
- It reflects a shift toward aligning crypto trading with structured market practices.
- The approach may encourage traders to adopt clearer hedging strategies.
- It suggests a broader market trend toward blending digital assets with traditional finance methods.
Crypto derivatives exchange Bitnomial has announced the launch of its XRP futures contract, marking the first-ever U.S. Commodity Futures Trading Commission (CFTC)-regulated XRP futures product in the country.
The exchange confirmed that its existing clients will gain access to the new offering starting March 20, 2025.
Bitnomial’s decision to move forward with XRP futures comes shortly after the U.S. Securities and Exchange Commission (SEC) withdrew its appeal in the Ripple lawsuit.
U.S. Crypto Derivatives Market Expands with Bitnomial’s XRP Futures Launch
The exchange had previously sued the SEC in October 2024 over the agency’s claim that it had jurisdiction over the XRP futures contracts Bitnomial planned to introduce.
Now, with the regulatory stance shifting, Bitnomial has decided to drop its lawsuit against the SEC, citing improved regulatory clarity.
Bitnomial emphasized that the XRP futures contract is physically settled, which means actual XRP will be delivered upon contract expiration rather than cash settlements.
The exchange has been working on launching this product since at least October 2024, colliding with broader efforts to bring more institutional-grade crypto derivatives to market.
New clients can onboard with one of its three futures commission merchant (FCM) partners: R.J. O’Brien and Associates, Marex Capital Markets, Inc., and Bitnomial Clearing LLC.
Bitnomial confirmed the product rollout in a post on X.
With CFTC approval secured, Bitnomial’s XRP futures contract is set to officially go live, adding a new regulated trading option for institutional and retail traders in the U.S. market.
Bitnomial Drops SEC Lawsuit as Ripple Scores Legal Victory
Bitnomial withdrew its lawsuit against the SEC after obtaining CFTC approval to launch its XRP futures product, resolving a months-long regulatory dispute.
The firm originally sued the SEC in October 2024, challenging the agency’s claim that it held jurisdiction over XRP futures contracts.
The SEC had argued that XRP futures constituted securities, requiring Bitnomial to register as a securities exchange prior to launching the product.
Bitnomial countered that such compliance was impossible without Ripple registering XRP as a security, which the company has not done.
The standoff escalated after Bitnomial cited a 2023 court ruling, which determined that XRP traded on secondary markets does not qualify as a security.
Ripple CEO Brad Garlinghouse announced on X that the SEC has dropped its appeal in the ongoing case, concluding a legal battle that began in December 2020 over allegations of a $1.3 billion unregistered securities offering.
Bitnomial’s case withdrawal followed shortly after this development.
The SEC’s decision to back down signals easing regulatory pressure on crypto markets, potentially paving the way for further product approvals like XRP futures in the U.S.
Frequently Asked Questions (FAQs)
Physical settlement ties futures pricing to actual token value, enhancing risk assessments. Traders gain a clearer picture of volatility, allowing more precise hedging and portfolio adjustments, all under defined market conditions.
By adopting a physically settled model, Bitnomial’s product may raise the bar for price clarity and disciplined trading. Its design might also prompt a review of current frameworks by regulators, merging digital and traditional finance.
Linking futures to actual token performance may attract risk-averse investors by offering clear market signals. This refined model could boost overall participation by instilling confidence in stable, transparent asset valuation.
This article first appeared at News
