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Cumberland Hit With SEC Charges for $2 Billion Crypto Sales

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The Securities and Exchange Commission (SEC) charges Cumberland DRW as an unregistered securities dealer. Cumberland fervently denies these accusations.

The core of the SEC’s suit is whether most crypto transactions are bound by securities law, a critical issue for the future of industry regulation.

Cumberland: Unregistered Securities Dealer?

Cumberland, a DRW-based crypto market maker, faces SEC charges for operating as an unregistered dealer in the crypto space. The SEC charged Cumberland with performing these services since March 2018 and selling more than $2 billion in unregistered transactions. In response, the firm published a furious statement:

“Today we became the latest target of the SEC’s enforcement-first approach to stifling innovation and preventing legitimate companies from engaging in digital assets. We are not making any changes to our business operations…as a result of this action by the SEC,” it read.

Read More: Who Is Gary Gensler? Everything To Know About the SEC Chairman

Cumberland was wholly combative in its tone. It mentioned a recent House Financial Services Committee meeting in which the SEC was called a “rogue agency,” suggesting the SEC overstepped its authority. Additionally, it described a history of Cumberland’s efforts to meet compliance and even previous spats with SEC Chair Gary Gensler.

Cumberland’s righteous indignation looks justified, given the circumstances. The firm has had a long history in the space, and claimed it registered as a broker-dealer in 2019. However, Cumberland alleges that the SEC claimed it could only legally trade Bitcoin or Ethereum, which are under the CFTC’s looser jurisdiction.

In other words, Cumberland called the SEC’s pleas to register a “Catch-22” and a “mirage.” It shared data and access with the SEC over the years, but the agency suddenly accused them of a six-year spree of finance crimes. This mirrors a similar situation two days ago when the SEC sent a Wells Notice to Crypto.com.

Read More: What Does It Mean To Receive a Wells Notice From the SEC?

Crypto.com was also combative in responding to the SEC, preemptively suing the agency before it could file charges. It accused the SEC of “regulation by enforcement,” and claimed that the SEC acted from desperation against a growing bipartisan pro-crypto consensus. Gensler seems to believe that most crypto asset transactions are securities, and that’s simply unworkable.

The text of the SEC’s charges against Cumberland makes little mention of specific unregistered securities transactions and leans on the idea that the industry is wrong to describe the majority of crypto assets as commodities. Crypto.com described this legal precedent as a battle for crypto’s future.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Scam Claims US Treasury Opened XRP Wallet

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In an apparent social media scam, individuals based in the Philippines tried to suggest that the US Treasury created an XRP wallet.

Although this incident immediately had substantial red flags, it was still circulated by popular X (formerly) accounts. This is a worrying sign about the state of the community in 2025, and there’s no easy solution.

Did the US Treasury Buy XRP?

Since President Trump took office, social media scams have been taking off in the crypto space. After the launch of the TRUMP meme coin, figures in his orbit have released their own rug pulls or egregiously sketchy token projects.

Another scam is now taking off, where someone claimed that the US Treasury opened an XRP wallet.

“[The] latest example of the rampant misinformation problem in the XRP community. This time we have fake KYC’d accounts from the Philippines pretending to be the US Treasury and issuing fake tokens on the XRPL. I’m being genuine when I ask, how do people actually fall for this stuff?” asked Zach Rynes, Chainlink Community Liason.

The US Treasury XRP Wallet scam took off quickly after it was first posted, with several major accounts boosting it. This fake wallet allegedly interacted with major institutions like Bank of America and JPMorgan, but on-chain analysis reveals that it’s based in the Philippines.

A non-US account clearly activated the phony Treasury wallet.

XRP Wallet Scam Revealed
XRP Wallet Scam Revealed. Source: XRPScan

In fairness, a few factors in the broader crypto ecosystem worked to make this hoax seem more plausible. For one, Trump has endorsed a US Bitcoin Reserve, and several states are trying to launch their own reserves.

The price of XRP has been soaring, and some community members believe that the Treasury under Trump could want in on the profits.

However, hoaxes like this work especially well on a vulnerable sector of the community: newcomers. Nearly half of TRUMP holders have never invested in crypto before, and this is a clear sign of the new interest in crypto.

If uninformed people hear verified credible accounts claiming that the US Treasury is boosting XRP, they might not have the background to dispute it.

Rynes went on to state that a trained eye could immediately see the red flags in this incident, but it’s “hard to know what the solution is” to major social media hoaxes like this.

Ultimately, the crypto community will need to do some real soul-searching, or scams could seriously sully the industry’s long-term reputation.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Price Holds Strong: Uptrend Shows No Signs of Slowing

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XRP price started a fresh increase above the $3.050 level. The price is holding gains and might continue to rise if it clears the $3.20 resistance.

  • XRP price gained over 15% and rallied toward the $3.40 zone.
  • The price is now trading below $3.250 and the 100-hourly Simple Moving Average.
  • There is a connecting bearish trend line forming with resistance at $3.20 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might start a fresh increase if it stays above the $2.880 support.

XRP Price Dips To Support

XRP price managed to start a fresh increase above the $2.750 and $2.880 resistance levels. The price outperformed both Bitcoin and Ethereum. There was a move above the $3.050 and $3.20 levels.

The price tested the $3.40 zone and recently corrected some gains. A low was formed at $2.81 and the price is now recovering. There was a move above the $3.050 level. The price cleared the 50% Fib retracement level of the downward move from the $3.23 swing high to the $2.81 low.

The price is now trading below $3.20 and the 100-hourly Simple Moving Average. There is also a connecting bearish trend line forming with resistance at $3.20 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $3.130 level or the 76.4% Fib retracement level of the downward move from the $3.23 swing high to the $2.81 low. The first major resistance is near the $3.20 level. The next resistance is $3.230.

XRP Price

A clear move above the $3.230 resistance might send the price toward the $3.320 resistance. Any more gains might send the price toward the $3.40 resistance or even $3.420 in the near term. The next major hurdle for the bulls might be $3.50 and a new all-time high.

Another Downside Correction?

If XRP fails to clear the $3.20 resistance zone, it could start another decline. Initial support on the downside is near the $3.00 level. The next major support is near the $2.88 level.

If there is a downside break and a close below the $2.88 level, the price might continue to decline toward the $2.750 support. The next major support sits near the $2.650 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $3.00 and $2.880.

Major Resistance Levels – $3.130 and $3.20.



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Weekly Price Analysis: Bitcoin Remains Rangebound while Altcoins Fly

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  • Prices rose over the first week of the year as open interest in the CME improved.
  • Altcoins outperformed Bitcoin as the largest crypto remained rangebound.
  • Meanwhile, ETF flows remained net negative.

Bitcoin

Bitcoin’s price improved last week but remained within the range established in previous trading sessions. BTC logged a weekly low of 91,271.19 and a high of $98,972.29. Bitcoin closed last week at $98,198.52.

Open interest in the CME improved over the last week as more contracts were added. Comparing that with price movement suggests that more long contracts were opened.

Meanwhile, BTC ETF flows were net negative next week as outflows totalled $652.10Mn.

Outlook

BTC found support within the demand zone on the H4 time frame and has begun a rise (supported by new futures longs). BTC will need to first break above the range high at $99,596.57.

BTC trades at $101,978.76 as of publishing.

Ethereum

Ethereum’s price action was more bullish as it broke above the range formed in the previous week’s trading session. The weekly low and high were $3,293.19 and $3,675.77, respectively. ETH closed last week at $3,637.39.

Similar to Bitcoin’s open interest charts, Ethereum OI reached a weekly low on Jan. 1 and has been rising since as new longs enter the derivatives market.

Meanwhile, spot ETH ETF inflows logged a negative week as $97.00Mn flowed out of ETFs in the US.

Outlook

While the price has broken through the last range high, it must clear the recent high, which is at the $4,096.44 level, to resume a bullish trend. In the interim, a demand level at the $3,500.00 level could serve as liquidity for an upward.

ETH trades at $3,679.36 as of publishing.

Solana

Solana’s price action was bullish last week as it broke above the local range high from the previous week’s trading session. Weekly low and high formed were $185.55 and $219.67.

Open interest in Solana followed a similar pattern as that of Bitcoin and Ethereum, picking up from Jan. 1.

Outlook

Despite failing to break its all-time high, Solana’s trend is bullish. However, the price has logged consecutive lower lows on the H4 time frame and must break the $230 level and then the $260 level to continue its bullish trend.

SOL trades at $218.28 as of publishing.

Ripple

Ripple’s price action improved last week after logging a low of $1.99 and a high of $2.50.

However, price was incongruent with open interest as an increase in long contracts did not buoy the price.

Outlook

Since breaking above the range high and pulling back for liquidity at the last higher low at $2.34, XRP’s price has logged higher highs and lows, climbing towards the next supply zone around $2.72.

XRP trades at  $2.44 as of publishing.



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