The U.S. Securities and Exchange Commission (SEC) has announced its plan to dismiss the lawsuit against crypto trading firm Cumberland DRW. Let's delve into the details of this decision.
Background of the Case
On October 10, the SEC filed a lawsuit against Cumberland DRW, accusing the company of operating as an unregistered securities dealer with over $2 billion in crypto assets turnover. The complaint stated that Cumberland had been acting without registration since March 2018, buying and selling assets that the SEC considered securities.
Details of the Agreement
On March 4, Cumberland DRW announced that they reached an agreement with the SEC to jointly dismiss the lawsuit. The filing process was initiated on February 20 and is currently awaiting the agency's approval.
Reaction and Implications
Cumberland DRW expressed hope to continue dialogue with the SEC to create an environment where technological advancements and regulatory clarity align.
The dismissal of the case against Cumberland DRW is part of a broader strategy by the SEC, revisiting its stance on various crypto cases, such as those involving Coinbase, Kraken, and others.
