- The SEC has agreed to dismiss its enforcement case against Cumberland DRW.
- The firm was accused of selling $2 billion in unregistered tokens, including Solana.
- Legal expert predicts Ripple case resolution could come in May, potentially earlier.
The U.S. Securities and Exchange Commission (SEC) has agreed to drop its enforcement case against Cumberland DRW, a crypto trading firm.
This development follows the SEC’s recent dismissal of its lawsuit against the crypto exchange Kraken, coming 15 months after filing charges of unregistered broker-dealer operations.
SEC Drops Unregistered Securities Dealer Allegations
The SEC initially sued Cumberland DRW in October 2024, alleging the firm operated as an unregistered securities dealer.
The lawsuit claimed Cumberland sold over $2 billion in unregistered securities, including tokens like Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL), among others.
Related: Trump Taps XRP, ADA for US Crypto Reserve, Ripple and Cardano Finally Get Along
Joint Filing Signals Case Dismissal, SEC Approval Pending
The company announced today that they have signed a joint filing with the SEC to dismiss the case. This agreement was reached between Cumberland DRW and the SEC staff on February 20 and is now awaiting approval from the SEC commissioners.
“As a firm deeply committed to the principles of integrity and transparency, we look forward to continuing our dialogue with the SEC to help shape a future where technological advancements and regulatory clarity go hand in hand, ensuring that the U.S. remains at the forefront of global financial innovation,” the company wrote in the statement.
Ripple Case Speculation Rises As SEC Case Reversals Mount
The decision to drop the lawsuit against Cumberland is the latest in a series of cases the SEC has dismissed.
Related: Ripple CTO Defends XRP Against ‘Vaporware Ponzi’ Claim By Bitcoin Maxi
In recent months, the SEC has also dropped suits against Kraken, ConsenSys, and Coinbase, while closing investigations into companies like Gemini, OpenSea and Robinhood Crypto.
Experts Weigh in on Ripple Case Timelines
With the SEC recently dropping cases against these other firms, many are wondering if Ripple’s case could also be dismissed.
Attorney Jeremy Hogan explained that the delay in Ripple’s case is likely due to a court order preventing Ripple from selling directly to customers. To get this order lifted, Ripple needs to carefully request the court’s approval, and the SEC must agree, which takes time.
Once both sides agree, they’ll drop their appeals, and Ripple will file its request, with the judge needing time to decide. Hogan believes the case might not be resolved until May, though it could move faster if the appeals are dropped by April.
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