Cumberland vs. SEC: Crypto Market Maker Defends Lawsuit

• The SEC says Cumberland has been working as an unregistered dealer since 2018.
• Cumberland is combating again and refusing to make changes to its enterprise operations.
• The agency stays assured in its compliance framework and compliance.

Chicago-based crypto market maker Cumberland, the SEC's newest goal, denies the regulator's allegations. The SEC sued Cumberland on Thursday for allegedly working as an unregistered seller and promoting greater than $2 billion value of crypto belongings. Cumberland responded by refusing to vary its enterprise operations and expressing confidence in its compliance framework.

SEC alleges unregistered buying and selling, Cumberland cites years of involvement

The Securities and Change Fee says Cumberland has been working as an unregistered seller since March 2018, shopping for and promoting belongings that the SEC classifies as securities. The company additionally mentioned Cumberland traded the securities as funding contracts via third-party exchanges.

However Cumberland balks at what he calls “overzealous regulators.” The corporate pointed to 5 years of cooperation with the SEC, throughout which it offered quite a few paperwork and summaries to help its claims concerning securities transactions. Cumberland says the SEC submitting is the primary time these particular transactions have been challenged.

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Cumberland additionally mentioned its 2019 registration as a broker-dealer, following SEC Chairman Gary Gensler's name to “simply come and register.” The market maker questioned the SEC's registration tips, citing the company's personal assertion that broker-dealer registration applies solely to buying and selling in bitcoin and ethereum.

In an X submit, crypto fanatic MetaLawMan acknowledged Cumberland's potential to battle the SEC. MetaLawMan famous that Cumberland's mother or father firm, DRW, is “a big, profitable enterprise operation that has been round for greater than 30 years.”

In its filings opposing the SEC's enforcement motion, Cumberland reaffirmed its place. The platform emphasised its dedication to the rules whereas noting the altering focus of the SEC. Cumberland additionally criticized the SEC's regulatory steering, stating, “This time round, the SEC's method seems to be a Title 22 sport the place the power to 'come and register' is a mirage.”