The U.S. Securities and Exchange Commission (SEC) terminated its case against Cumberland, which leads crypto liquidity worldwide. The SEC took action two days in a row when it chose to end its prosecution against both Kraken Exchange and Cumberland DRW.
Cumberland works with SEC personnel to reject their legal proceedings through a shared document. On February 20, the company reached an agreement with the SEC staff members to proceed with the filing, which now needs final SEC approval.
Cumberland DRW and SEC Reach Agreement to Drop Case
Our team joins the SEC to officially drop legal proceedings against Cumberland DRW. Our company continues its dedication to open communication and working with regulatory bodies as shown by our current decision said Cumberland. The organization shares its continuous cooperation with SEC and its efforts to build a system that promotes crypto advancements with effective market supervision.
During Gary Gensler’s term as SEC chairman numerous legal battles including Cumberland DRW’s took place. When Acting Chair Mark Uyeda took over the agency leadership a different method started to emerge within SEC operations.
In recent months, the SEC has stopped pursuing legal action against various crypto companies, including well-known names Coinbase, ConsenSys, and Kraken. The agency has officially stopped evaluating Gemini and OpenSea to join Robinhood Crypto and Yuga Labs.
SEC Shifts Strategy, Easing Crypto Enforcement Actions
The SEC is taking a new approach by avoiding the heavy enforcement actions it previously pursued with crypto companies. Cumberland platforms enjoy better regulatory conditions now that the SEC is taking a new approach toward digital assets.
The SEC maintains changes to its oversight rules as time moves forward. Hester Pierce the SEC Commissioner leading all things crypto declared the establishment of a new Crypto Task Force at the agency.
Today we signed a joint filing to be made with the Securities and Exchange Commission (SEC) dismissing its case against Cumberland DRW. The filing was agreed in principle between Cumberland DRW and SEC staff on February 20 and is currently pending Commission approval. As a firm…
— Cumberland (@CumberlandSays) March 4, 2025
A team made up of high-level staff members and ten senior advisors run this action team while being led by senior team members including a Chief of Staff and Officers. This initiative demonstrates that the SEC wants its future cryptocurrency regulation process to be more focused and knowledgeable.
SEC Keeps Ripple Lawsuit Despite Dropped Cases
The crypto community focuses now on the ongoing Ripple trial after the legal win of Cumberland. The SEC keeps its lawsuit open against Ripple Labs while it dismisses multipleRYPTO company cases including Coinbase, Robinhood, Uniswap, and Gemini.
Ripple sees better chances in its legal battle because President Trump put XRP within the U.S. strategic crypto reserve. The Ripple lawyers have asked the court for until April 16, 2025 to present their cross-appeal to the case.
Leading XRP specialists think a solution will come before April 16 2025 but nobody knows for sure because the court has not released new information on the case. The SEC continues changing its crypto policies while the Ripple case determines if US digital asset regulations should change.
Conclusion
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The SEC decided to end its litigation against Cumberland CEO despite their previous enforcement actions in the crypto space. The industry and its users expect the current scenario to bring regulated crypto standards to the market. The current lawsuit against Ripple stands as a major legal battle that should determine new standards for crypto companies in the United States.
Stay tuned to The BIT Journal and keep an eye on Crypto’s updates. Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!
FAQs
1. Why did the SEC drop the case?
The SEC and Cumberland reached a joint agreement, reflecting a shift in regulatory approach.
2. How does this affect crypto firms?
It signals a more lenient stance, creating a better regulatory environment.
3. What is the SEC Crypto Task Force?
A new team focused on improving crypto market oversight.
4. What’s next for the Ripple lawsuit?
Ripple’s case is ongoing, with a key deadline set for April 16, 2025.
Glossary Of Key Terms
SEC – U.S. financial regulator overseeing securities and crypto.
Cumberland DRW – A major crypto liquidity provider.
Enforcement Actions – Legal cases by regulators against firms.
Crypto Task Force – SEC team focused on crypto oversight.
Cross-Appeal – Legal challenge to a court ruling.
Reference
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