The US Securities and Exchange Commission (SEC) has filed a lawsuit against Cumberland, a digital asset market maker, accusing it of being an unregistered securities dealer. In response, Cumberland said that the SEC’s enforcement priority strategy aims to stifle innovation and prevent legitimate companies from participating in the digital asset field. The dispute is over whether some of Cumberland’s transactions involving certain crypto assets are securities transactions. Despite registering as a broker-dealer in 2019, Cumberland claims that the SEC has not allowed them to use their broker-dealers to trade BTC or ETH. Cumberland will not change its business operations or assets that provide liquidity as a result of the SEC’s action and is confident in their compliance framework.
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