coinspress.com
The SEC has charged Cumberland DRW with operating as an unregistered securities dealer, a claim the company firmly denies.
The lawsuit focuses on whether many cryptocurrency transactions fall under securities regulations, a pivotal issue for the industry’s future.
Cumberland, a market maker linked to DRW, reportedly conducted over $2 billion in unregistered trades since March 2018. In a strong rebuttal, the firm criticized the SEC’s approach, arguing that its demands create impossible situations and asserting it won’t change its business practices.
The firm highlights its long-standing compliance efforts and previous conflicts with SEC Chair Gary Gensler, alleging the SEC’s restriction to Bitcoin and Ethereum trading undermines its business. This mirrors a recent dispute where Crypto.com preemptively sued the SEC, criticizing its reliance on enforcement instead of clear regulations.
Overall, the SEC’s charges lack specific details on unregistered transactions and challenge the classification of many crypto assets as commodities, underscoring the ongoing battle for clarity in cryptocurrency regulation.