Cumberland vs. SEC: Crypto Market Maker Fights Again In opposition to Lawsuit

• The SEC alleges Cumberland of functioning as an unregistered dealer since 2018.
• Cumberland defends itself and refuses to make changes to its enterprise operations.
• The agency stays assured in its compliance framework and regulatory adherence.

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

SEC Alleges Unregistered Dealing, Cumberland Cites Years of Engagement

The Securities and Trade Fee claims Cumberland has operated as an unregistered seller since March 2018, shopping for and promoting belongings the SEC classifies as securities. The company additionally said that Cumberland traded securities as funding contracts by way of third-party exchanges.

Nonetheless, Cumberland is combating again in opposition to what it calls “overzealous regulators.” The corporate pointed to 5 years of engagement with the SEC, throughout which it offered quite a few paperwork and summaries to assist its claims in opposition to safety transactions. Cumberland asserts that the SEC’s lawsuit is the primary time these particular transactions have been questioned.

Learn additionally : “Orange” Analogy Provides Zest to Ripple’s Enchantment In opposition to SEC

Cumberland additionally mentioned its 2019 registration as a broker-dealer, which adopted SEC Chair Gary Gensler’s name to “simply are available in and register.” The market maker questioned the SEC’s registration steering, citing the company’s personal assertion that broker-dealer registration solely applies to buying and selling Bitcoin and Ethereum.

Crypto fanatic MetaLawMan acknowledged Cumberland’s potential to struggle the SEC in an X put up. MetaLawMan famous that Cumberland’s dad or mum firm, DRW, is a “massive, profitable buying and selling operation that has been round for over 30 years.”

In its statements in opposition to the SEC’s enforcement motion, Cumberland reaffirmed its place. The platform emphasised its dedication to rules whereas calling out the SEC’s shifting goal. Cumberland additionally criticized the SEC’s regulatory steering, stating, “This time, the SEC’s method appears to be a recreation of Catch-22 the place the power to ‘are available in and register’ is only a mirage.”