SEC Charges Cumberland DRW with Operating Unregistered Crypto Securities Dealer

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Cumberland DRW LLC, accusing the Chicago-based crypto market maker of operating as an unregistered securities dealer. According to the SEC, Cumberland engaged in the purchase and sale of over $2 billion in crypto assets—some of which the agency considers securities—without adhering to federal registration requirements.

The SEC’s complaint reveals that Cumberland has been conducting these activities since at least 2018 through its trading platform, Marea, and via direct phone transactions. The firm has positioned itself as a key liquidity provider in the cryptocurrency market, facilitating trades involving major digital assets, including Polygon (MATIC), Solana (SOL), Cosmos Hub (ATOM), Algorand (ALGO), and Filecoin (FIL).

In its statement, the SEC reiterated that U.S. federal laws require all dealers to register, regardless of whether their activities involve traditional securities or digital assets.

SEC’s Intensified Scrutiny of Crypto This case underscores the SEC’s increasing regulatory scrutiny of the cryptocurrency sector under Chair Gary Gensler. Gensler has consistently voiced concerns about the prevalence of fraud and unregulated practices within the crypto industry. His tenure has been marked by a series of enforcement actions targeting crypto firms that the SEC claims have violated securities laws by failing to register their offerings.

Earlier this week, SEC Commissioner Mark Uyeda criticized the agency’s aggressive stance, pointing to growing tensions within the Commission. Meanwhile, Crypto.com has also taken legal action against the SEC, challenging a Wells notice alleging that the platform operated as an unregistered broker-dealer and securities clearing agency.

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