Cumberland Responds to SEC’s Lawsuit, Says “Ready To Defend”

After the U.S. Securities and Exchange Commission charged Cumberland DRW, a Chicago-based crypto trading firm, with various securities charges; Cumberland has come up with a response statement on X.

In a X post, Cumberland said, “Today we became the latest target of the SEC’s enforcement-first approach to stifling innovation and preventing legitimate companies from engaging in digital assets. This comes despite bipartisan pushback on this approach in the most recent House Financial Services Committee hearing, in which the SEC was called a rogue agency, cited for its failure to work with Congress and taken to task for abusing its power.”

Cumberland has pushed back the charges saying that it is against SEC’s view that some of their transactions involving certain crypto assets were securities transactions. The crypto trading firm went on to highlight its five years of ‘good-faith discussions’ with the SEC about this point, and as a result, had shared several statements, produced thousands of pages of material and made their senior management personnels available for many hours of interviews with SEC. 

But it was only ‘yesterday that a complaint was the first time outlined by SEC’, added Cumberland.

Courtesy: Cumberland X account

The SEC had also asserted that Cumberland’s transactions required them to register as a broker-dealer- a requirement that was conceded by the firm in 2019. 

Cumberland has added that it will not make any changes to their business operations or the assets in which they provide liquidity as a result of this action by the SEC. 

Also Read: Bitnomial Sues SEC Over XRP Futures, Challenging Security Status Claim