The U.S. Securities and Exchange Commission (SEC) has moved to drop its lawsuit against Cumberland DRW, marking yet another reversal in its crypto enforcement campaign.
This comes after the regulator dismissed its case against Kraken, following more than a year of legal battles over alleged unregistered broker-dealer activities. The SEC originally sued Cumberland DRW in October 2024, alleging the firm operated as an unregistered securities dealer.
The lawsuit claimed that Cumberland facilitated over $2 billion in unregistered securities transactions, including significant cryptocurrencies such as Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL).
Also Read: XRP Lawsuit Update: Is Ripple Negotiating its Case With the Second Circuit Court?
SEC Files for Dismissal, Awaiting Final Approval
Cumberland DRW agreed with SEC staff on February 20 to dismiss the case. A joint filing has been submitted and awaits formal approval from the SEC commissioners, which would end the lawsuit officially.
The trading firm reiterated its commitment to regulatory compliance and emphasized its dedication to working with regulators to help establish clear guidelines for the crypto industry. The firm stated that ensuring the U.S. maintains leadership in global financial innovation remains a top priority.
SEC’s Legal Reversals Spark Ripple Speculation
The SEC’s latest dismissal adds to a growing trend of abandoned crypto-related cases. Lawsuits against Kraken, ConsenSys, and Coinbase have also been dropped, while investigations into Gemini, OpenSea, and Robinhood Crypto have quietly ended.
According to legal expert Jeremy Hogan, this pattern has intensified speculation surrounding the Ripple case. Hogan explained that the delay in Ripple’s legal proceedings stems from a court order restricting direct sales to customers.
He noted that before Ripple can move forward, the court must approve the request to lift the restriction, and the SEC must also sign off, prolonging the process.
Hogan suggested a resolution may not come until May, though a quicker settlement is possible if both parties drop their appeals by April.
Also Read: What the XRP Community Can Expect From First White House Crypto Summit
