The U.S. Securities and Exchange Commission has filed charges against Cumberland DRW LLC for operating as an unregistered dealer.

The SEC alleges that Cumberland, a Chicago-based crypto market maker, bought and sold over $2 billion in crypto assets, including those treated as securities, without registering as required by federal securities laws.

According to the SEC’s complaint, Cumberland has conducted these activities since at least 2018 through its trading platform, Marea, and by phone. 

The SEC claims Cumberland marketed itself as a major liquidity provider, trading various crypto assets, including those associated with Polygon (MATIC), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL).

In its statement, the SEC emphasized that federal laws require all dealers to register, regardless of whether they deal in traditional securities or crypto assets.

SEC vs. crypto

Gary Gensler, the SEC Chair, has taken a strong stance against the crypto industry, viewing it as fraught with fraud and illegal practices. His leadership has led to a series of legal actions against crypto companies, asserting that many cryptocurrencies qualify as unregistered securities and fall under the SEC’s jurisdiction

Earlier in the week, SEC Commissioner Mark Uyeda criticized the agency’s approach to cryptocurrency regulation, as Crypto.com sued the SEC over a Wells notice alleging the platform operated as an unregistered broker-dealer and securities clearing agency.