• The SEC alleges that Cumberland has been working as an unregistered dealer since 2018.
• Cumberland is defending itself and refusing to regulate its enterprise operations.
• The corporate is assured in its compliance framework and regulatory compliance.

Chicago-based cryptocurrency market maker Cumberland, the SEC’s newest goal, is pushing again towards the regulator’s claims. The SEC on Thursday charged Cumberland with appearing as an unregistered vendor and promoting greater than $2 billion in crypto belongings. Cumberland responded by refusing to vary its enterprise operations and expressing confidence in its compliance framework.

SEC alleges unregistered buying and selling, Cumberland state claims years of involvement

The Securities and Change Fee alleges that since March 2018, Mr. Cumberland has been working as an unregistered vendor, shopping for and promoting belongings that the SEC classifies as securities. The company additionally mentioned Mr. Cumberland traded securities as funding contracts by way of a third-party alternate.

However Cumberland is combating again towards what it calls “overzealous regulators.” The corporate pointed to its five-year engagement with the SEC, throughout which period it supplied quite a few paperwork and summaries supporting its claims towards securities transactions. Cumberland argues that the SEC's lawsuit is the primary time these particular transactions have been known as into query.

Additionally learn: 'Orange' analogy fuels Ripple's lawsuit towards SEC

Cumberland additionally mentioned registering as a securities vendor in 2019, following SEC Chairman Gary Gensler's name to “simply register.” Market makers questioned the SEC's registration steering, citing the SEC's personal assertion that broker-dealer registration applies solely to Bitcoin and Ethereum buying and selling.

Cryptocurrency fanatic MetaLawMan confirmed on the X Publish that Cumberland might struggle the SEC. MetaLawMan famous that Cumberland's dad or mum firm, DRW, is a “giant and profitable buying and selling enterprise that has been in existence for greater than 30 years.”

In a press release responding to the SEC's enforcement motion, Mr. Cumberland reaffirmed his place. The platform emphasised its dedication to regulation whereas noting adjustments within the SEC's targets. Cumberland additionally criticized the SEC's regulatory steering, saying, “The SEC's strategy this time seems to be a Catch-22 recreation the place the power to 'are available in and register' is only a mirage.”