After accusing Cumberland DRW of running an unregistered security business operation, the US Securities and Exchange Commission have decided to quit the case.
In March 4 X postChicago -based Crypto firm said it had signed a joint filing with SEC to dismiss the case after an agreement on 20 February. The filing still requires formal approval from the agency, but Camberland is confident that the case is ending.
The camberlands look at the decision of the agency as a step towards better cooperation between the regulators and the Crypto industry and said it will continue to discuss with the SEC to build a future where “technological progress and regulatory clarity run in hand.”
Cumberland’s case was focused on allegations that it was operated as an unregistered securities dealer, with the SEC of doing more than $ 2 billion trade in the crypto property without appropriate registration.
In the 10 October suit against the firm last year, the Commission said that Cumberland did these trades through its ownership trading platforms, Maria, and over-the-counter deals conducted by the phone. The agency also indicated five specific tokens – Polagon, Solan, Cosmos, Algorand and FileCoin – that it was considered securities under the federal law.
As part of its case, SEC was going for permanent prohibitory relief relief, profit hatred, bias interest and civilian punishment.
However, Cumberland pushed back, arguing that it was registered as a dealer-booker in 2019 and spent five years in getting entangled in “good faith discussion” with SEC.
This is so far another crypto case from which SEC has gone in recent months. In the previous weeks, the regulator has also dropped cases against major exchanges such as coinbase and cracks, as well as investigating NFT players Uga Labs and Openeria. Recently, it ended the investigation in Uniswap Labs and Gemini.
In the relevant developments, the SEC led by Commissioner Hester recently unveiled key personnel which would be a part of its Crypto Task Force. The new team is set to host the roundatements to clarify the security status of digital assets, the first session set at Washington, DC, headquarters of the agency on 21 March.
