SEC Sues Leading Crypto Market Maker Cumberland DRW Again; Alleges Solana, Polygon, Algorand Are Securities

Oct 10, 2024, 05:06 PM

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Cumberland DRW, alleging that the firm operated as an unregistered dealer in the crypto asset markets. Cumberland DRW, one of the most significant market makers and among the first to provide liquidity for Bitcoin trading, is accused of dealing in cryptocurrencies that the SEC considers securities. The complaint specifically names Solana (SOL), Polygon (POL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL). This action is notable because it is not the first time the SEC has sued Cumberland. Additionally, the SEC's complaint uses the phrasing "crypto assets offered and sold as securities" instead of its usual "crypto asset securities," which has drawn attention. The lawsuit reflects the SEC's ongoing stance that most cryptocurrencies, except Bitcoin and Ethereum, may be considered securities, continuing its recent enforcement efforts in the crypto industry.