SEC Sues Crypto Trading Firm Cumberland DRW Cumberland said it will defend itself against the allegations. SEC chair and crypto foe Gary Gensler has become a flashpoint in the presidential election.
The Securities and Exchange Commission on Thursday sued crypto company Cumberland DRW, accusing the Chicago-based trading firm of acting as an unregistered broker when it sold Solana and Polygon tokens.
Since 2018, Cumberland has “offered and sold more than $2 billion in crypto assets as securities,” the SEC said. Allegedly.
The regulator wants Cumberland to disgorge “all illicit business profits” and pay a fine, among other demands.
Cumberland said he will defend himself against the charges.
“We are not making any changes to our business operations or the assets we provide liquidity to,” it said in a Advertisement Shared on X “We are confident in our strong compliance framework.”
SEC Chair Gary Gensler has become a flashpoint in the upcoming presidential election, in part over his agency's aggressive stance toward crypto.
According to the crypto venture capital firm, more than half of the crypto-related enforcement actions taken by the SEC since 2015 came during Gensler's three-year tenure. sample.
Targets include startups as well as some of the world's largest exchanges such as Coinbase and Binance.
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Gensler has long argued that most cryptocurrencies fall under the 90-year-old securities laws that govern stocks and bonds. By failing to register tokens as securities, he argues, many issuers are breaking the law.
Crypto companies and entrepreneurs have launched a resistance, preemptively suing the SEC in the hope that the courts will side with them and declare their activities legal.
Republican presidential candidate Donald Trump has promised to fire Gensler if elected. His opponent, Democratic Vice President Kamala Harris reported She told the finance executives that she would do the same.
SEC Commissioner Mark Ueda — one of two Republicans on the five-member panel — He clapped Gensler's tenure as a “disaster” on Fox Business Thursday.
In its statement, Cumberland said it had “engaged in five years of good faith discussions with the SEC” regarding the status of the crypto assets and indicated it was blindsided by the lawsuit.
“Despite the industry's frequent protests that sales of crypto assets are similar to sales of all commodities, our complaint alleges that Cumberland, related issuers and objective investors treated the offering and sales of crypto assets as investments in securities,” said George G, Acting Chief of the SEC's Crypto Assets and Cyber Unit. Tenriro said in a statement.
“Cumberland profited from its dealer activities in these properties without providing investors and the market with the important protections afforded by registration.”
Alex Gilbert News'Diffie correspondent from New York. You can reach him at [email protected].
Related Topics Securities and Exchange Commission (SEC) Gary Gensler
