SEC sues the biggest crypto market-maker
The SEC has filed a lawsuit against Cumberland, the Chicago-based crypto market-maker.
The SEC has filed a lawsuit against Cumberland, the Chicago-based crypto market-maker.
According to a press release from the U.S. securities regulator, Cumberland is accused of trading unregistered securities, offered and sold as cryptocurrencies. Jorge G. Tenreiro, acting head of the SEC's Crypto Assets and Cyber Unit (CACU), said: “Under federal securities laws, all securities dealers must register with the Commission, and that includes those active in crypto markets.”
Cumberland, part of the DRW Trading Group, is a major player in the crypto space and helps institutional investors invest in cryptocurrencies. They’re also a big client of Tether, the issuer of the largest stablecoin (USDT). This not only contributes to price stability in the crypto market but also drives higher activity in the space.
In response to the charges, Cumberland said they won’t change their practices and are ready to fight the SEC: “We are not changing our business strategy[…] and we are prepared to defend ourselves.”
Within the SEC itself, there’s also criticism of the crypto market crackdown. SEC Commissioner Mark Uyeda called the agency’s policy “a disaster for the entire sector” in an interview with Fox Business.
If Donald Trump were to become the next U.S. president—and right now he’s leading 55 to 43 percent—SEC’s crypto-hostile regulation could change. Trump has said he would reform the SEC backed by President Biden, starting with firing Chair Gary Gensler on day one of his term.
