SEC Drops Legal Action Against Cumberland DRW According to Firm Announcement
The SEC has agreed to dismiss its enforcement suit against Cumberland DRW, a cryptocurrency trading firm based in Chicago, pending approval from Commissioners. This suit accused the firm of functioning as an unregistered securities dealer and involved the sale of over $2 billion in unregistered securities.
Key Insights:
- The SEC’s decision to drop the case is part of a wider trend where many lawsuits against crypto businesses are being abandoned.
- Cumberland DRW’s CEO, Don Wilson, previously defended the firm against these allegations, revealing their attempts to register with the SEC and criticizing regulatory ambiguity under past leadership.
“This situation enables the SEC to claim that everyone is in violation of the law, thereby allowing them to target specific companies,” Wilson remarked, drawing parallels to themes in ‘Atlas Shrugged’.
Just five months post the lawsuit’s initiation, under Acting Chair Mark Uyeda, the SEC has reversed its stance towards Cumberland DRW, mirroring similar actions towards companies like Coinbase, ConsenSys, and Kraken.
Cumberland expressed its commitment to working with the SEC towards regulatory clarity aimed at fostering innovation in the financial sector.
A representative of Cumberland DRW refrained from providing further commentary beyond their official announcement.
The SEC has not yet responded to inquiries for additional insights regarding this matter.
