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- The SEC drops its case against Cumberland DRW, marking another reversal in its crypto enforcement strategy.
- Regulatory uncertainty grows as the SEC dismisses multiple crypto lawsuits, including Cumberland DRW’s case.
- Ripple’s legal battle gains attention as the SEC drops cases against major crypto firms.
The U.S. Securities and Exchange Commission (SEC) has agreed to drop its enforcement action against Cumberland DRW, a crypto trading firm. This decision follows the regulator’s recent dismissal of its lawsuit against Kraken after 15 months of legal proceedings over allegations of unregistered broker-dealer operations.
In October 2024, the SEC brought an action against Cumberland DRW, alleging that the company was an unregistered securities broker. The allegations in the lawsuit touch upon the fact that the firm allegedly helped facilitate the sale of over $2 billion in securities, including digital currencies and tokens such as Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL).
SEC and Cumberland DRW Submit Joint Filing for Case Dismissal
Cumberland DRW core announced to the public that it had informally resolved the case and had reached a settlement with the SEC staff on the case on February 20. The parties filed a joint statutory disclosure, and the five SEC commissioners will review the case as closing documents.
The firm emphasized its commitment to transparency and regulatory compliance in a statement. Cumberland DRW expressed its intent to continue working with regulators to foster an environment where technological advancements align with clear regulatory frameworks, ensuring that the U.S. remains a leader in financial innovation.
Ripple Case Speculation Grows as SEC Drops More Lawsuits
The SEC’s decision to drop its case against Cumberland DRW is part of a broader pattern of regulatory reversals. The U.S. Securities and Exchange Commission (SEC) has recently dismissed lawsuits against Kraken, ConsenSys, and Coinbase while closing investigations into Gemini, OpenSea, and Robinhood Crypto.
According to legal expert Jeremy Hogan, this trend has intensified speculation regarding the ongoing Ripple lawsuit. Hogan also mentioned that the reason for the delay in Ripple is that it is currently legally restrained from selling to customers directly. He revealed that Ripple required a court order to remove the restriction imposed, and the SEC has to be on board for a long-term analysis.
While some expect a resolution soon, Hogan said the case may not remain unsettled until May. However, the timeline could move faster if both parties drop their appeals by April.
With the SEC dismissing multiple cases, many in the crypto industry are watching closely to see whether Ripple will also benefit from this shifting regulatory approach.
Also Read: Riot Platforms VP Pierre Rochard Asserts That XRP Does Not Qualify as a Security
