XRP Futures Start at US Stock Exchange Chicago on May 19 – Ripple CEO Cheers
The U.S. financial market operator CME launches new XRP Futures on May 19, allowing for legally compliant trading with leverage. Ripple CEO Brad Garlinghouse hopes this will also positively impact the ongoing court case against the SEC.
The U.S. derivatives exchange CME has announced a concrete schedule for the launch of XRP Futures. According to CME’s statement, the trading of the new financial products based on the cryptocurrency XRP will begin on May 19. Ripple CEO Brad Garlinghouse immediately took to Twitter to mention the appearances of XRP in a legal context and the potential influence on the ongoing case against the U.S. Securities and Exchange Commission (SEC).
Background on the Ripple vs. SEC Case
Ripple and its cryptocurrency XRP have been embroiled in a lawsuit in the U.S. since December 2020, with the SEC accusing them of illegally selling securities without proper authorization. In this legal dispute, Ripple refers to XRP as a currency rather than a security, contrasting with the SEC’s viewpoint. Now, Garlinghouse is seeking CME’s intervention as a demonstration of XRP’s significance and legitimacy.
Details about the XRP Futures from CME
XRP Futures from CME will be traded under the existing “CME CF Reference Rates” for cryptocurrencies, which are already used for Bitcoin and Ethereum. They allow institutional and private investors to speculate on price fluctuations of XRP without the need to directly own the cryptocurrency. Futures contracts are a well-established instrument to take on both short and long positions, thus addressing two types of market expectations.
Why the Start of XRP Futures at CME Is Important
Garlinghouse emphasized that the introduction of XRP Futures at CME underscores the belief in the legitimacy of XRP and its functional currency properties. This positive signal from such a reputable market participant as CME could also influence the ruling in the case with the SEC by adding to the arguments supporting Ripple’s position.
Conclusion: XRP Futures May Bring New Attention and Developments
With the upcoming offering of XRP Futures by CME, there is hope from the Ripple camp to elevate XRP to a new level of recognition and acceptance in the U.S. Specifically, it remains exciting how such legal maneuvers will be considered in the court decision on the SEC lawsuit, on which the U.S. crypto industry continues to have an eye.
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