Solana

Algorand

Polygon

Cosmos

<ul class="wp-block-list">
  
 <li>SEC charges Cumberland DRW for unregistered securities dealing involving over $2B in crypto trades.</li>   
 <li>Cumberland asserts strong compliance despite SEC's claim of trading cryptos like Polygon and Solana as securities.</li>   
 <li>Crypto market remains stable despite new SEC lawsuit against major market maker Cumberland DRW.</li> 
</ul>   
The United States Securities and Exchange Commission (SEC) has filed legal action against Chicago-based Cumberland DRW, accusing the crypto trading firm of acting as an unregistered securities dealer.&nbsp;   
In its complaint, the SEC averred that Cumberland used to trade in cryptocurrencies that it claimed to be investment contracts and, therefore, securities under federal law. This action aligns with other recent oversights by the SEC on various players in the cryptocurrency market who are against securities law violations.   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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 https://twitter.com/CumberlandSays/status/1844424478660624806 
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</figure>   
The SEC’s filing notes that Cumberland claimed to trade over $2bn in cryptocurrencies, all of which were sold as unregistered securities. The complaint only lists the cryptocurrencies Polygon (POL), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL), suggesting these are only part of a broader array of digital assets under scrutiny.&nbsp;   
The agency argues that Cumberland used its research reports and communications with other parties including emails to endorse these cryptocurrencies as worthy investment thus regualting the market.   
<h2 class="wp-block-heading" id="h-market-reaction-and-cumberland-s-defense">Market Reaction and Cumberland's Defense</h2>   
Despite the serious nature of the allegations, the impact on cryptocurrency prices has been muted. Industry experts suggest that the market's subdued reaction might stem from a growing perception that well-capitalized firms like Cumberland will likely mount a robust defense against the SEC's charges.&nbsp;   
Historically, major crypto firms, including Ripple and Coinbase, have contested similar lawsuits, often without drastic negative consequences on crypto valuations.   
Cumberland has taken to social media to defend its practices in response to the lawsuit. The firm asserts its commitment to compliance, emphasizing the dynamic and often ambiguous nature of regulatory frameworks in the crypto space. Cumberland’s statement on X also highlighted their ongoing operations and liquidity provisions, which will not change due to the lawsuit.&nbsp;   
The firm expressed confidence in its compliance framework, underscoring a disciplined adherence to the regulatory standards as they have evolved, even referencing past regulatory debates surrounding assets like Ethereum. 
The post <a href="https://cryptonewsland.com/sec-files-lawsuit-against-cumberland-drw-for-unregistered-securities-dealing/">SEC Files Lawsuit Against Cumberland DRW for Unregistered Securities Dealing</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.

SEC Files Lawsuit Against Cumberland DRW for Unregistered Securities Dealing

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