The US Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against the Chicago-based crypto trading firm, Cumberland DRW. The firm announced on March 4 via X (formerly Twitter) that it had signed a joint filing with the SEC to drop the case.
The filing between Cumberland DRW and the SEC was agreed upon in principle on February 20 and now waits for SEC approval before finalization. This represents one of many crypto-related lawsuits the SEC has decided to dismiss.
The SEC previously decided to dismiss legal actions against major crypto exchanges Coinbase and Kraken together with the crypto firm Consensys. The regulator concluded investigations of Yuga Labs and OpenSea NFT companies as well as Gemini and Uniswap Labs crypto exchanges.
Cumberland DRW became the target of an SEC lawsuit in October 2022 due to its alleged unregistered securities dealing activities involving more than $2 billion worth of crypto assets.
The SEC filed a lawsuit against Cumberland DRW for its activities of trading Polygon, Solana and Filecoin tokens which the SEC classified as securities. Cumberland maintained its position as a dealer-broker after registering in 2019 while maintaining continuous good-faith discussions with the SEC throughout the years.
Cumberland declared its dedication to partner with the SEC to build regulatory structures which both enable technological progress and provide regulatory transparency.
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