SEC Targets Cumberland Over Unregistered Securities Dealership Claims
The SEC has charged Cumberland DRW with operating as an unregistered securities dealer, a claim the company firmly denies.
The lawsuit focuses on whether many cryptocurrency transactions fall under securities regulations, a pivotal issue for the industry’s future.
Cumberland, a market maker linked to DRW, reportedly conducted over $2 billion in unregistered trades since March 2018. In a strong rebuttal, the firm criticized the SEC’s approach, arguing that its demands create impossible situations and asserting it won’t change its business practices.
READ MORE: US Targets Crypto Market Manipulation in Major Fraud Crackdown
The firm highlights its long-standing compliance efforts and previous conflicts with SEC Chair Gary Gensler, alleging the SEC’s restriction to Bitcoin and Ethereum trading undermines its business. This mirrors a recent dispute where Crypto.com preemptively sued the SEC, criticizing its reliance on enforcement instead of clear regulations.
Overall, the SEC’s charges lack specific details on unregistered transactions and challenge the classification of many crypto assets as commodities, underscoring the ongoing battle for clarity in cryptocurrency regulation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
