The US’ Securities and Exchange Commission (SEC) has now decided to dismiss the enforcement action against Cumberland DRW, which is a Chicago-based crypto trading firm. The legal complaint filed in October, 2024, claimed that the firm acted as an unlicensed dealer of securities and has sold securities worth over $2 billion. US SEC Withdraws Charges Against Cumberland DRW In a recent filing, the US SEC agreed to drop its enforcement case against Cumberland DRW. The decision is pending approval from most of the commission’s three-panel members. The agency had previously accused the firm of acting as an unregistered securities dealer. The lawsuit, filed in October 2024, alleged that Cumberland DRW sold more than $2 billion in unregistered securities. The SEC named several tokens, including Polygon (POL), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL), as securities. Consequently, the firm dismissed the allegation and affirmed that it had attempted to meet regulatory standards. Following the announcement, Cumberland DRW released a statement expressing its commitment to regulatory dialogue. The crypto trading platform added, “As a firm deeply committed to the principles of integrity and transparency, we look forward to continuing our dialogue with the SEC to help shape a future where technological advancements and regulatory clarity go hand in hand, ensuring that the U.S. remains at the forefront of global financial innovation.” Enforcement Reversal Under New Leadership The decision to drop the case against Cumberland DRW follows a series of abandoned enforcement actions by the US SEC. Since Acting Chair Mark Uyeda took office, the agency has withdrawn cases against multiple crypto firms. These include Coinbase, ConsenSys, and Kraken lawsuit . The SEC has also shut down investigations in several firms, among them Gemini, OpenSea, Robinhood Crypto, and Yuga Labs. Such change of stance is a clear pointed towards a differing approach towards the crypto regulation from the agency. Cumberland DRW was one of the many enforcement actions that was taken under prior leadership of the SEC. At the same time, the Securities and Exchange Commissioner Hester Pierce revealed members of the newly created Crypto Task Force. These officials are; a Chief of staff, Chief Counsel, Chief Policy advisor and Chief Operations’ officer, complemented by 10 senior advisors from the division of the SEC. Regulatory Adjustments in Crypto Enforcement The US SEC’s decision to drop the case against Cumberland DRW marks another shift in its stance on crypto regulation. The agency’s previous enforcement actions had drawn criticism from industry leaders and legal experts. Under the new leadership, the US SEC appears to be reconsidering its strategy toward digital assets. More so, the continued legal actions and settlements by the U.S. SEC have led to speculation that the commission might be nearing a resolution in the Ripple lawsuit . With recent cases against other crypto firms being dropped, industry observers believe the SEC may reconsider its stance on XRP. Ripple awaits the SEC’s decision by April 16, 2025, as the broader crypto market monitors the case impact. The post US SEC Drops Case Against Cumberland DRW in Crypto Securities Dispute appeared first on CoinGape .
