SEC Drops Lawsuit Against Cumberland DRW in Crypto Policy Shift

The U.S. Securities and Exchange Commission (SEC) has dropped its enforcement case against Cumberland DRW, the crypto trading arm of Chicago-based DRW, in a major policy reversal under Acting Chair Mark Uyeda. The case, filed last October, accused Cumberland of operating as an unregistered securities dealer and selling over $2 billion in unregistered securities, including tokens like Polygon (POL), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL).

At the time, Cumberland DRW and its CEO Don Wilson pledged to fight the charges, arguing that the SEC's lack of regulatory clarity was intentional. Wilson previously criticized the agency's approach, stating it allowed selective enforcement.

Just five months later, the SEC has not only dropped its case against Cumberland but also abandoned lawsuits against Coinbase, ConsenSys, and Kraken. Additionally, it has closed multiple crypto investigations, including those into Gemini, OpenSea, Robinhood Crypto, and Yuga Labs. The decision to drop these cases still requires approval from a majority of the three SEC commissioners.

In its announcement, Cumberland DRW reaffirmed its commitment to integrity and transparency, emphasizing the importance of regulatory clarity to foster financial innovation in the U.S. A representative for the firm declined further comment beyond its official statement on X.

The SEC has not responded to requests for comment.