SEC agrees to drop lawsuit against Cumberland DRW, says firm

The US Securities and Exchange Commission volition disregard its lawsuit against the Chicago-based Cumberland DRW, the crypto trading steadfast says.

“Today we signed a associated filing to beryllium made with the Securities and Exchange Commission (SEC) dismissing its lawsuit against Cumberland DRW,” Cumberland wrote successful a March 4 X post. 

Cumberland said the filing was agreed successful rule betwixt Cumberland DRW and SEC unit connected Feb. 20 and is presently awaiting the agency’s approval. 

It’s the latest crypto-related suit the SEC has agreed to drop. It has antecedently dropped cases against crypto exchanges Coinbase and Kraken, on with crypto steadfast Consensys.

The regulator has besides precocious announced it had dropped its probe into non-fungible token (NFT) companies Yuga Labs and OpenSea, and crypto speech Gemini and Uniswap Labs.

Source: Cumberland

“We look guardant to continuing our dialog with the SEC to assistance signifier a aboriginal wherever technological advancements and regulatory clarity spell manus successful hand,” Cumberland added. 

Related: Yuga Labs says SEC has dropped its probe into the NFT firm

The SEC sued Cumberland DRW connected Oct. 10, alleging a azygous complaint of operating arsenic an unregistered securities trader for much than $2 cardinal successful crypto assets. 

The regulator claimed Cumberland acted arsenic an unregistered trader since March 2018 by buying and selling crypto assets deemed to beryllium securities. 

The SEC besides claimed that 5 of the tokens that Cumberland handled were securities, including Polygon (POL), Solana (SOL), Cosmos (ATOM), Algorand (ALGO) and Filecoin (FIL).

The bureau was seeking imperishable injunctive relief, disgorgement of ill-gotten gains, prejudgment involvement and civilian penalties.

Cumberland argued it had registered arsenic a dealer-broker successful 2019 and was deed with the suit contempt engaging successful “five years of good-faith discussions” with the SEC, adding it was conscionable “the latest target” of SEC’s “enforcement-first attack to stifling innovation.”

Crypto speech Coinbase precocious filed a request nether the Freedom of Information Act (FOIA) to the SEC seeking to observe however overmuch the US Securities and Exchange Commission spent connected enforcement enactment against crypto firms. 

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