The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Cumberland DRW, a Chicago-based crypto firm, after accusing it of operating an unregistered securities trading operation.

Agreement Reached and Joint Filing Signed

In a recent post, Cumberland announced that it had signed a joint filing with the SEC to dismiss the lawsuit, following an agreement reached on February 20. Although the filing still requires formal approval from the agency, Cumberland appears confident that the case is coming to an end.

Implications for the Crypto Industry

Cumberland views the agency’s decision as a step toward better cooperation between regulators and the crypto industry. The firm stated that it will continue discussions with the SEC to build a future where “technological advancements and regulatory clarity go hand in hand.”

The case centered on allegations that Cumberland operated as an unregistered securities dealer, with the SEC accusing the firm of trading over $2 billion in crypto assets without proper registration. The agency pointed to five specific tokens – Polygon, Solana, Cosmos, Algorand, and Filecoin – that it considered securities under federal law.

SEC’s Recent Crypto-Related Developments

This marks yet another crypto case from which the SEC has walked away in recent months. The regulator has also dropped lawsuits against major exchanges like Coinbase and Kraken, as well as investigations into NFT players Yuga Labs and OpenSea. More recently, it ended probes into Uniswap Labs and Gemini.

SEC’s Crypto Task Force

In related developments, the SEC, led by Commissioner Hester, recently unveiled key personnel that would be part of its Crypto Task Force. The new team is set to host roundtables to clarify the security status of digital assets, with the first session scheduled for March 21 at the agency’s Washington, D.C., headquarters.

For more news and updates on the crypto industry, visit Global Crypto News.

“technological advancements and regulatory clarity go hand in hand.”

Some key takeaways from this development include:

  • The SEC’s decision to drop the lawsuit against Cumberland may be a sign of improved cooperation between regulators and the crypto industry.
  • The case highlights the importance of proper registration and compliance with federal laws for crypto firms.
  • The SEC’s Crypto Task Force aims to provide clarity on the security status of digital assets.
Post Views: 0