# SEC Dismisses Action Versus Cumberland DRW Regarding Unlisted Stock Trading
Following accusations against Cumberland DRW for managing a business dealing in unlisted stocks, the SEC has opted to discontinue the action.
The crypto company, located in Chicago, disclosed via a social media post on Toncoin (TON) Value Forecast for March 26th 4 that it had inked a mutual agreement with the SEC to put an end to the legal dispute, subsequent to a consensus reached on February 20. Although the paperwork still requires official authorization from the body, Cumberland appears assured that the matter is reaching its conclusion.
Cumberland perceives the body’s choice as progress towards enhanced cooperation between supervisors and the digital currency sector, mentioning that it will proceed with talks with the SEC to construct a time ahead where “technological progress and regulatory lucidity are intertwined.”
The action versus Cumberland concentrated on claims that it functioned as a non-registered stock seller, with the SEC asserting the entity exchanged in excess of $2 billion in digital currency assets without suitable registration.
During their legal action versus the company last October, the SEC indicated that Cumberland performed these transactions utilizing its exclusive trading system, Marea, and also via over-the-counter deals executed by telephone. The body additionally highlighted five particular tokens – Polygon, Solana, Cosmos, Algorand, and Filecoin – which it considers to be stocks under national legislation.
Within the legal action, the SEC was pursuing lasting court-ordered assistance, retrieval of earnings, pre-judgment interest, and monetary fines.
Nevertheless, Cumberland responded that it had enrolled as a seller-broker in 2019 and had devoted five years to “sincere dialogues” with the SEC.
This signifies one more digital currency legal matter that the SEC has ceased in recent months. In prior weeks, the regulator has also rescinded legal actions versus major exchanges such as Coinbase and Kraken, alongside probes into NFT participants Yuga Labs and OpenSea.
In recent times, probes into Uniswap Labs and Gemini have wrapped up.
Separately, the SEC, led by Commissioner Hester, just revealed the primary individuals of its digital currency working group. This fresh squad is arranging a string of assembly discussions to illuminate the unclear circumstances encircling the security standing of virtual properties. The initial gathering is slated for March 21st at the SEC main office in Washington D.C.
