Bitcoin price stable despite SEC case against Cumberland DRW.

SEC Charges Cumberland DRW, Market Little Fazed

Thursday’s revelations that the US Securities and Exchange Commission (SEC) was going after Crypto market maker and liquidity provider Cumberland DRW did little to shake up the prices in the market. While Bitcoin briefly dropped below $60,000 before the news broke, it has since regained its footing, according to CoinGecko Data.

One reason for this resilience could be the confidence that many well-funded companies in the Crypto space have successfully battled the SEC in court. Matt Hougan, Chief Investment Officer at Bitwise, explained that companies like Ripple, Coinbase, and Grayscale have set a precedent by standing up to the SEC.

On Thursday, the SEC charged Cumberland DRW with securities violations related to trading “Crypto Assets that are offered and sold as investment Contracts on third-party Crypto asset Exchanges.” However, Cumberland's parent company DRW has faced similar Legal challenges in the past, notably winning a case against the Commodities and Futures Trading Commission in 2018.

The SEC's Targeted Cryptos

In addition to Cumberland DRW, the SEC also targeted several high-profile cryptocurrencies, including Solana, Polygon, Cosmos, Algorand, and Filecoin, alleging that these assets are considered securities. The SEC hinted at more potential targets but did not provide an exhaustive list in its complaint.

Despite the SEC's actions, these targeted assets have shown resilience over the past 24 hours, with traders seemingly undeterred by the regulatory scrutiny.

Gensler's Future at the SEC

As SEC Chair Gary Gensler faces increasing political pressure in Washington, some market observers believe that his position at the agency is growing increasingly precarious. Ryan McMillin, Chief Investment Officer at Merkle Tree Capital, stated that Gensler's hostility towards the industry may ultimately lead to his departure from the SEC.

With a potential change in administrations looming, many believe that Gensler may not have a role at the SEC in the future, further adding to the uncertainty surrounding regulatory oversight in the crypto space.