The US Securities and Exchange Commission (SEC) agreed to overthrow the implementation case against the Cumberland DRW, the Crypto trading arm of the firm-based Chicago DRW, according to a Tuesday announcement from the company.
The Sec Sued Cumberland DRW in October.
By the time the suit was filed, Cumberland DRW and its CEO Don Wilson promised to fight the charges. In an interview with CoinDesk in October, Wilson said his firm had tried and failed to register as a security businessman including the SEC, and suggested that the lack of clarity for crypto companies under hairing Gary Gensler was a feature, not a bug of agency regulation.
Read more: Who is afraid of Gary Gensler? Not Don Wilson, the businessman to defeat the regulator previously
“This dynamic places the SEC in a position where they can say that everything is destroying the rule, and we will only follow whoever we wants,” Wilson told CoinDesk. “(This) reminds me of ‘Atlas shrugged.’ If everyone destroys the law, they can choose anyone they want.
Just five months later, under the new leadership of acting chair Mark Uyeda, the SEC is a completely reversed course. The agency’s decision to overthrow its suit against the Cumberland DRW was the latest in a series of abandoned suits: the SEC also fell into its case against the Coinbase, and agreed to overthrow its cases against Consensys and Kraken. It also closed many probes to crypto companies, including Gemini, Opensea, Robinhood Crypto and Yuga Labs. Like the Consensys and Kraken agreements, the SEC agreement with Cumberland is awaiting approval from most of the three commissioners currently in the panel. The commission voted to drop the Coinbase case this past week.
“As a stable focused on the principles of integrity and transparency, we expect the continuation of our SEC communication to help develop a future where technology advances and regulatory clarity come together, ensuring that the US stays ahead of global financial modern financial modern,” Cumberland said in its announcement.
A representative for the Cumberland DRW refused to comment beyond the Firm’s X post.
The SEC did not respond to CoinDesk’s request for comment.
