- SEC has charged Cumberland for operating as an unregistered dealer in the crypto market
- Action part of broader SEC efforts, following similar charges against companies like Coinbase
The US Securities and Exchange Commission (SEC) has accused crypto market maker Cumberland of operating as an unregistered dealer.
SEC alleged that the company has been buying and selling crypto assets without proper registration since March 2018. According to the SEC, Cumberland has ignored regulatory requirements despite calls from SEC Chairman Gary Gensler urging cryptocurrency companies to “come in and register.”
The regulatory body claims that Cumberland was expressly prohibited from using its registered broker-dealer status for crypto activities, which have now been dormant but have remained active in the crypto space.
The SEC’s action against Cumberland is part of its broader efforts to tighten regulatory scrutiny of the U.S. crypto market. It has scrutinized crypto companies for compliance with securities laws, with a particular focus on companies operating without the necessary registrations.
Cumberland’s case highlights the SEC’s stance on crypto market makers operating outside regulatory frameworks and underscores the agency’s commitment to bringing these entities under its jurisdiction.
Increasing SEC scrutiny of the crypto industry
The SEC’s charges against Cumberland come amid a wave of regulatory actions targeting the crypto industry. In recent months, the SEC has taken significant steps to curb unregistered activity within the industry.
Earlier this year, the agency sued crypto exchange Bittrex for allegedly failing to register as a broker, clearing agency and exchange.
In a similar move, the SEC filed a lawsuit against Coinbase, alleging that it was operating as an unregistered broker and exchange, with Gensler emphasizing the need for all cryptocurrency entities engaged in securities-related activities to adhere to registration requirements .
These actions are part of a broader strategy by the SEC to regulate the cryptocurrency market in the US. The agency’s approach has raised concerns within the crypto community, with many industry leaders claiming that the SEC’s strict enforcement stance is stifling innovation and encouraging crypto. companies abroad.
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However, the SEC continues to maintain that its actions are necessary to protect investors and ensure that crypto assets are subject to the same regulations as traditional financial products.
Credit : ambcrypto.com
