SEC Drops Enforcement Case Against Cumberland DRW Following New Leadership
The U.S. Securities and Exchange Commission (SEC) has decided to drop its enforcement case against Cumberland DRW, the crypto trading arm of DRW, as announced by the company.
- The SEC previously sued Cumberland DRW in October 2023, accusing it of operating as an unregistered securities dealer and selling over $2 billion in unregistered securities, including tokens like Polygon, Solana, Cosmos, Algorand, and Filecoin.
- Cumberland DRW's CEO, Don Wilson, stated the firm attempted to register as a securities dealer but faced regulatory ambiguity under former Chair Gary Gensler.
- Under Acting Chair Mark Uyeda, the SEC has reversed its stance and dropped multiple lawsuits, including those against Coinbase, ConsenSys, and Kraken.
- The agreement with Cumberland is pending approval from the current SEC commissioners.
- Cumberland expressed commitment to working with the SEC for regulatory clarity and innovation in the financial sector.