Cumberland DRW Responds to SEC Charges with Statement
After facing charges from the U.S. Securities and Exchange Commission, Chicago-based Crypto trading firm Cumberland DRW has issued a response statement. The firm took to X post to express its stance amidst the SEC's enforcement actions.
Cumberland stated, “Today we became the latest target of the SEC’s enforcement-first approach to stifling Innovation and preventing legitimate companies from engaging in Digital assets. This comes despite bipartisan pushback on this approach in the most recent House Financial Services Committee hearing, in which the SEC was called a rogue agency, cited for its failure to work with Congress and taken to task for abusing its power.”
Cumberland Pushes Back Against SEC's View
In response to the charges, Cumberland has highlighted its opposition to the SEC's interpretation that some of their transactions involving certain Crypto Assets were securities transactions. The firm emphasized that it has engaged in five years of ‘good-faith discussions’ with the SEC on this matter. Cumberland revealed that they have shared numerous statements, provided thousands of pages of material, and made their senior management personnel available for extensive interviews with the SEC.
However, Cumberland mentioned that it was only ‘yesterday that a complaint was the first time outlined by SEC’, placing emphasis on the timing of the SEC's actions.
Data-lazy-sizes="(max-width: 608px) 100vw, 608px" src="https://d2xxnw34h0qte0.cloudfront.net/https://www.cryptonewsz.com/wp-content/uploads/2024/10/Cumberland-Reacts-to-SECs-Lawsuit-1.webp"/ loading="lazy" />Standing Firm Against Broker-Dealer Requirement
The SEC had asserted that Cumberland’s transactions necessitated registration as a broker-dealer, a requirement that the firm acknowledged in 2019. Despite this, Cumberland has made it clear that they will not be altering their business operations or the assets they provide liquidity in response to the SEC's actions.
Additionally, recently Bitnomial Sues SEC Over XRP Futures, Challenging Security Status Claim.
