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US SEC Drops Case Against Cumberland DRW in Crypto Securities Dispute

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4 hours ago

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The U.S. Securities and Exchange Commission (SEC) has agreed to drop its enforcement case against Cumberland DRW, a Chicago-based crypto trading firm. The lawsuit, filed in October 2024, accused the firm of operating as an unregistered securities dealer and selling over $2 billion in unregistered securities.

US SEC Withdraws Charges Against Cumberland DRW

In a recent filing, the US SEC agreed to drop its enforcement case against Cumberland DRW. The decision is pending approval from most of the commission’s three-panel members. The agency had previously accused the firm of acting as an unregistered securities dealer.

The lawsuit, filed in October 2024, alleged that Cumberland DRW sold more than $2 billion in unregistered securities. The SEC named several tokens, including Polygon (POL), Solana (SOL), Cosmos (ATOM), Algorand (ALGO), and Filecoin (FIL), as securities. The firm had denied the allegations and stated it had attempted to comply with regulatory requirements.

Following the announcement, Cumberland DRW released a statement expressing its commitment to regulatory dialogue. The firm emphasized its dedication to integrity and transparency in the evolving financial landscape.

The crypto trading platform added,

“As a firm deeply committed to the principles of integrity and transparency, we look forward to continuing our dialogue with the SEC to help shape a future where technological advancements and regulatory clarity go hand in hand, ensuring that the U.S. remains at the forefront of global financial innovation.”

Enforcement Reversal Under New Leadership

The decision to drop the case against Cumberland DRW follows a series of abandoned enforcement actions by the US SEC. Since Acting Chair Mark Uyeda took office, the agency has withdrawn cases against multiple crypto firms. These include Coinbase, ConsenSys, and Kraken lawsuit.

The SEC has also closed investigations into several companies, including Gemini, OpenSea, Robinhood Crypto, and Yuga Labs. These reversals indicate a shift in the agency’s approach to crypto regulation. The case against Cumberland DRW was one of the key enforcement actions initiated under previous SEC leadership.

Meanwhile, the Securities and Exchange Commissioner Hester Pierce revealed members of the newly formed Crypto Task Force. The 15-member team includes key officials such as a Chief of Staff, Chief Counsel, Chief Policy Advisor, and Chief of Operations, alongside 10 senior advisors from various SEC divisions. Pierce emphasized that the task force will focus on developing practical solutions for crypto regulation.

Regulatory Adjustments in Crypto Enforcement

The US SEC’s decision to drop the case against Cumberland DRW marks another shift in its stance on crypto regulation. The agency’s previous enforcement actions had drawn criticism from industry leaders and legal experts. Under the new leadership, the US SEC appears to be reconsidering its strategy toward digital assets.

More so, the continued legal actions and settlements by the U.S. SEC have led to speculation that the commission might be nearing a resolution in the Ripple lawsuit. With recent cases against other crypto firms being dropped, industry observers believe the SEC may reconsider its stance on XRP. Ripple awaits the SEC’s decision by April 16, 2025, as the broader crypto market monitors the case impact.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

White House Announces Support For CRA To Overturn IRS DeFi Broker Rule

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9 hours ago

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March 4, 2025

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The White House has publicly announced its support for a Congressional Review Act (CRA) resolution aimed at overturning the Internal Revenue Service’s (IRS) broker rule for decentralized finance (DeFi). The rule, finalized in 2024, expands the definition of a broker to include DeFi developers, requiring them to report user transaction data to the IRS.

White House and Lawmakers Oppose IRS Broker Rule

David Sacks, the White House’s Crypto and AI advisor, confirmed the administration’s backing of the CRA. He stated that the rule, introduced in the final months of the Biden administration, imposes strict reporting obligations on DeFi developers. The White House supports the repeal, emphasizing that the regulation places an unnecessary burden on software developers and infrastructure providers.

Senator Ted Cruz and Representative Mike Carey introduced the CRA resolution, seeking to nullify the IRS DeFi Broker Rule. The resolution requires a simple majority in both chambers of Congress to pass. Lawmakers argue that DeFi developers should not be classified as brokers under existing tax laws, as they do not directly facilitate transactions between buyers and sellers.

Critics of the rule believe it could discourage innovation in the digital asset space. Peter Van Valkenburgh, Executive Director of Coin Center, stated that enforcing broker-like reporting requirements on DeFi developers could hinder technological progress. The White House’s stance aligns with lawmakers who advocate for a regulatory approach that supports blockchain development.

Senate to Vote on CRA Resolution

The Senate is set to vote on the CRA resolution that seeks to repeal the IRS DeFi Broker Rule. The vote was initially scheduled for March 5, but potential delays due to the upcoming State of the Union address may push it back. If passed in both chambers, the resolution would overturn the IRS regulation.

Supporters of the CRA argue that the broker classification under the rule is too broad, as it includes software developers and platform operators who do not control user funds. They believe that imposing tax reporting requirements on DeFi developers will drive innovation outside the United States.

Technology experts warn that compliance with the rule could be impractical for decentralized platforms. This is because the platforms do not have a central authority managing user accounts. Many DeFi protocols operate through smart contracts, which do not have direct control over user funds or identity verification.

The White House’s support for the CRA suggests a shift toward a more innovation-friendly approach in digital asset regulation.

Meanwhile, most recently, ConsenSys filed with the U.S. SEC to challenge another DeFi-related regulatory proposal, reinforcing its stance against the expansion of “exchange” definitions to decentralized protocols. 

Future of Crypto Regulation in the U.S.

The outcome of the CRA resolution will serve as an early indicator of how the U.S. government will regulate digital assets. The White House’s support signals a willingness to work with pro-crypto lawmakers to establish regulations that foster growth while ensuring compliance with tax laws.

Lawmakers advocating for the resolution believe that repealing the IRS DeFi Broker Rule would reinforce the administration’s pro-crypto stance.

Moreover, the pro-crypto Congress has formed the Crypto Caucus to drive digital asset legislation, focusing on regulatory clarity and innovation. The caucus aims to fast-track stablecoin and market structure bills in line with Trump’s push for crypto-friendly policies. Lawmakers believe these efforts will strengthen the U.S.’s leadership in blockchain and financial technology.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Peter Schiff Calls For Congress To Investigate Trump’s Crypto Rug Pull

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1 day ago

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March 4, 2025

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Bitcoin critic Peter Schiff has urged Congress to launch an investigation into what he describes as the largest crypto rug pull in history. Schiff’s demand follows controversial posts from President Donald Trump’s Truth Social account, which allegedly contributed to a pump and dump scheme.

Schiff is calling for transparency regarding the authorship of these posts, the individuals who had prior knowledge of them, and the financial transactions linked to the incident.

Bitcoin Critic Peter Schiff Blasts Trump Over Alleged Crypto Pump and Dump 

Peter Schiff has raised concerns about the recent surge in cryptocurrency prices following two posts from President Donald Trump’s Truth Social account. Schiff claims the posts were strategically timed to manipulate the market, benefiting individuals who had advance knowledge of their release. He has called for a full congressional investigation to determine who was involved.

The economist has specifically questioned the authorship of the Truth Social posts. Peter Schiff believes certain individuals may have used insider knowledge to invest in cryptos such as XRP, Cardano (ADA), Solana (SOL), Bitcoin (BTC), and Ethereum (ETH) before selling at inflated prices. He urged lawmakers to trace financial transactions linked to the alleged scheme.

More so, the Bitcoin critic is demanding access to emails and text messages from Trump’s staff, family, and employees. He aims to investigate any coordination behind the crypto-related posts on Truth Social. 

Peter Schiff added, 

“Donald Trump, the first crypto President, just helped pull off the biggest crypto rug pull of all time. A Congressional investigation is now warranted.”

Schiff Questions Insider Trading

Schiff has urged authorities to examine whether individuals close to Donald Trump benefited financially from the crypto market movements. He is calling for an investigation into who purchased digital assets before the posts were made public.

The Bitcoin critic wants investigators to determine how much money was invested by those with prior knowledge of the posts and the exact timing of any subsequent sales. Schiff claims that if insider trading occurred, it would constitute a major financial scandal.

The Bitcoin critic said,

“We also need all emails or text messages that involve any members of the President’s staff, his or their family or friends, his campaign donors, or Truth Social employees, that relate to either of the two Sunday Truth Social posts.”

Bitcoin Critic Rejects Support for BTC Reserve

Meanwhile, Peter Schiff recently distanced himself from previous comments that appeared to support a strategic Bitcoin reserve. He now claims that Bitcoin enthusiasts misrepresented his statements to manipulate public perception.

The economist has accused Bitcoin promoters of spreading false information to inflate BTC prices. Schiff insists that his remarks were taken out of context and that he never endorsed Bitcoin as a reserve asset. He has criticized what he calls “fraudulent tactics” used by Bitcoin supporters to influence the market.

Despite Peter Schiff’s allegations, the Donald Trump administration has continued to push its crypto agenda. In a recent CoinGape report, US SEC Commissioner Hester Pierce confirmed the members of the newly formed Crypto Task Force, signaling a shift in regulatory approach. The 15-member team includes staff from various SEC divisions, focusing on developing clear guidelines for the crypto industry.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Commissioner Hester Pierce Unveils Crypto Task Force Members

Published

1 day ago

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March 3, 2025

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The US Securities and Exchange Commission’s (SEC) Crypto Task Force is inching toward full operations following the unveiling of team members. US SEC Commissioner Hester Pierce has assembled a dream team cutting across several departments and units of the securities watchdog.

US SEC Confirms Crypto Task Force Members

The SEC’s newly minted Crypto Task Force is raring to go following the confirmation of team members by Pierce. The US SEC Commissioner disclosed the team’s composition in a press release, hinting at a varied selection process.

Pierce stated that the team comprises staff from the Acting Chairman’s office and several divisions within the SEC. Led by Pierce, the Commissioner had a free rein to select the task force members.

“The Crypto Task Force exhibits deep expertise and an enthusiastic commitment to identifying -with the help of other talented staff across the Commission and interested members of the public – workable solutions to difficult crypto regulatory problems.

The 14-man team comprises a Chief of Staff, a Chief Counsel, a Chief Policy Advisor, and a Chief of Operations. The remaining ranks are made up of 10 senior advisors drawn from various units within the US SEC.

The Team Will Solve The Hardest Regulatory Issues

Within days of assuming office, Acting US SEC Chair Mark Uyeda launched the Crypto Task Force to give the agency new direction. The agency is tasked with establishing the criteria for determining whether or not a cryptocurrency is a security.

Weeks after the announcement of the task force, the SEC disclosed that memecoins are not securities, urging the public to remain wary of scams.

Pierce has hailed the new direction of the task force while criticizing regulation by enforcement during the Gensler era. The task force will be the main advisory body to the SEC on crypto-related matters.

As a show of commitment, the Commission has dismissed Kraken’s case, ditching its actions against Coinbase and Gemini as well.

 

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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