Chair

Gary

<p>The U.S. Securities and Exchange Commission (SEC) has charged Cumberland DRW, a prominent crypto market maker, for allegedly operating as an unregistered dealer in the cryptocurrency markets. The SEC claims Cumberland conducted over $165 billion in crypto transactions without registering as a securities dealer, a violation of the Securities Exchange Act of 1934.</p>
<h2 class="wp-block-heading" id="h-sec-s-ongoing-crypto-enforcement-efforts">SEC’s Ongoing Crypto Enforcement Efforts</h2>
<p>This action against Cumberland DRW is part of the SEC’s broader efforts to regulate the rapidly growing cryptocurrency sector. Over the past year, the SEC has increased its enforcement against crypto companies that it believes are not complying with existing securities laws. According to the SEC, Cumberland’s activities as a dealer required registration under federal law due to the volume and nature of its transactions in crypto assets.</p>
<h2 class="wp-block-heading" id="h-cumberland-drw-s-response">Cumberland DRW’s Response</h2>
<p>In response to the SEC’s charges, Cumberland DRW released a strong <a href="https://x.com/CumberlandSays/status/1844424478660624806/photo/1" rel="noopener noreferrer nofollow">statement </a>criticizing the SEC’s enforcement-first approach. The company emphasized that it had engaged in good-faith discussions with the SEC over the past five years and had provided substantial documentation to the agency. Cumberland stated:</p>
<p>“Today we became the latest target of the SEC’s enforcement-first approach to stifling innovation and preventing legitimate companies from engaging in digital assets… We are not making any changes to our business operations or the assets in which we provide liquidity as a result of this action by the SEC. We are confident in our strong compliance framework and disciplined adherence to all known rules and regulations.”</p>
<p>Cumberland further highlighted its earlier registration as a broker-dealer in 2019, following SEC Chair Gary Gensler’s call to “just come in and register.” However, the firm argued that despite this step, they were still restricted in how they could operate, calling into question the SEC’s guidance.</p>
<p>The statement concluded with a commitment to defend against the charges, drawing parallels to past legal battles with regulators: “We’re ready to defend ourselves again.”</p>
<h2 class="wp-block-heading" id="h-lack-of-clear-regulation-continues-to-trigger-legal-battles">Lack of Clear Regulation Continues to Trigger Legal Battles</h2>
<p>The SEC’s case against Cumberland DRW is the latest in a series of legal actions against major crypto entities such as Coinbase, Binance, and Ripple. Until the SEC establishes a clear regulatory framework for the cryptocurrency sector, these enforcement actions are likely to continue.</p>
<p>The crypto industry has consistently called for clearer guidelines, arguing that without well-defined rules, firms are left vulnerable to enforcement without knowing exactly how to comply. Until this regulatory uncertainty is addressed, the SEC will likely keep targeting crypto companies under existing securities laws, as seen with the cases involving major players like Ripple, <a href="https://www.unlock-bc.com/129222/coinbase-sec-court-showdown-40-lawmakers-revolt-sab-121/" rel="noopener noreferrer nofollow">Coinbase</a>, <a href="https://www.unlock-bc.com/118630/judge-approves-binances-4-3-billion-payment-in-us-plea-deal/" rel="noopener noreferrer nofollow">Binance</a>, and now Cumberland DRW.</p>
<p>The post <a href="https://www.unlock-bc.com/130706/sec-charges-cumberland-drw-unregistered-dealer/" rel="noopener noreferrer nofollow">US SEC Charges Cumberland DRW for Acting as Unregistered Crypto Dealer</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.</p>

US SEC Charges Cumberland DRW for Acting as Unregistered Crypto Dealer

Table of Contents

UNLOCK_ENG

Other articles published on Oct 11, 2024

Ripple Doubles Down: Cross-Appeals SEC Ruling in Landmark XRP Case

Bitcoin Recognized as Divisible Property in South Korean Divorces

Nigerian court denies bail for Binance exec Tigran Gambaryan

Shiba Inu (SHIB) And Ripple (XRP) Move To WallitIQ (WLTQ) AI Token For 3500% Gain

BlockDAG Bags $10M in 72 Hours & Unveils New Explorer! Plus, Ethereum’s Descent & Tron’s Record-B...

Blocksquare Partners with FractioneX to Empower First Time Real Estate Buyers (11 Oct)

Join our free newsletter for daily crypto updates!