The U.S. SEC sues Cumberland DRW, accusing it of being an unregistered securities dealer

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) has sued Cumberland DRW, claiming it operates as an unregistered securities dealer. According to the SEC's indictment information, Cumberland has been trading crypto assets as securities for its own accounts as an unregistered dealer since March 2018.

In response, Cumberland DRW issued a statement on the X platform saying, "The SEC believes that some of our transactions involving certain crypto assets are securities transactions. We took this step in 2019 by acquiring a registered broker-dealer. It was only then that we were informed that we could only trade BTC or ETH (both commodities, not under SEC jurisdiction) through our broker-dealer."

Cumberland DRW stated that the SEC's action will not change its business operations or the assets it provides liquidity for. The court's allegations against DRW are "merely based on a 'flat Earth' conviction." This time, the SEC's approach seems to be a game of "Catch-22," where the ability to "come in and register" is just a mirage. We are ready to defend ourselves again.