The US Securities and Exchange Commission (SEC) has intensified its supervision of the cryptocurrency industry by filing securities charges against the prominent trading firm Cumberland DRW. Based in Chicago, the crypto trader is accused of operating as an unregistered dealer and handling over $2 billion worth of digital assets that the SEC deems as securities.
In a complaint filed on Thursday, the regulator specifically named five cryptocurrencies – Solana, Polygon, Cosmos, Algorand, and Filecoin – as securities, but noted that the list was not exhaustive. According to Jorge G. Tenreiro, the SEC’s Acting Chief of the Crypto Assets and Cyber Unit, despite claims from industry players that crypto assets are akin to commodities, the complaint alleges that Cumberland, issuers, and investors treat these assets as securities investments.
Tenreiro stated in a news release that “Cumberland profited from its dealer business without offering investors and the market the essential protections that come with registration.” In response to the accusations, the trading company took to social media to assert that it would continue its business operations and liquidity provision for assets without any changes.
The SEC’s enforcement actions in the digital asset space have targeted major players, with Cumberland DRW being the latest recipient. This case follows complaints against prominent US cryptocurrency exchanges like Coinbase and Kraken for similar violations related to unregistered securities.
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