SEC to Dismiss Case Against Cumberland DRW Amid Crypto Policy Shift

Cumberland DRW announced that it has reached an agreement with SEC staff to dismiss the lawsuit filed against it last year, pending approval from the Commissioners. This is among several cases being dropped under new SEC acting Chair Mark Uyeda.

The SEC sued Cumberland in October, alleging it conducted $2 billion in unregistered securities transactions, including assets like Polygon, Solana, Cosmos Atom, Algorand, and Filecoin. Cumberland pushed back, arguing the SEC offered no path for compliance since regulated broker-dealers could only trade Bitcoin and Ether, which are classified as commodities, not securities.

While the SEC primarily targeted crypto-native firms, Cumberland’s case was unique as it bridged the traditional financial (TradFi) sector. The regulator had also investigated Robinhood but dropped the probe last week.