Crypto Trading Firm Cumberland Says SEC Plans to Drop Lawsuit

Cumberland DRW has announced that the Securities and Exchange Commission agreed to dismiss its lawsuit against the firm.

Writing on X on Tuesday, the Chicago-based crypto trading firm said the case will be scrapped pending final SEC approval.

The SEC last year sued Cumberland for various securities charges, alleging the firm operated as an unregistered dealer in handling more than $2 billion worth of cryptocurrencies.

Digital coins and tokens Solana, Polygon, Cosmos, Algorand, and Filecoin were mentioned in the lawsuit, which alleged Cumberland traded “crypto assets that are offered and sold as investment contracts on third-party crypto asset exchanges.”

“As a firm deeply committed to the principles of integrity and transparency, we look forward to continuing our dialogue with the SEC to help shape a future where technological advancements and regulatory clarity go hand in hand, ensuring that the U.S. remains at the forefront of global financial innovation,” Cumberland said on X.

Decrypt reached out to both the SEC and Cumberland for comment, but did not immediately receive a response from both.

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Cumberland is the crypto trading arm of the DRW investment firm.

The SEC during the Biden administration sued a number of high-profile crypto companies in the U.S., often alleging under its former Chair Gary Gensler that they had sold unregistered securities in the form of digital tokens.

But since crypto-friendly President Trump took office in January, the regulator has backtracked and dismissed—or said it will dismiss—cases against Kraken, Coinbase, Robinhood, and others.

The SEC has also launched a new task force under commissioner Hester Peirce, and rescinded its Staff Accounting Bulletin (SAB) No. 121, which was deemed by the industry to create unnecessary hassle for companies in the space.

Editor's note: This story was updated after publication with additional details.

Edited by Andrew Hayward