The U.S. Securities and Exchange Commission (SEC) has filed a civil enforcement action against Chicago-based Cumberland DRW, the crypto-focused subsidiary of DRW Holdings, a diversified trading firm that engages in proprietary trading across various asset classes.

Bitnomial, a Chicago-based cryptocurrency derivatives exchange specializing in physically settled Bitcoin futures and options, has initiated legal action against the SEC, claiming the regulator has overstepped its authority by classifying XRP as a security.  

Ripple, a prominent provider of digital asset infrastructure, has announced several key updates to its Ripple Custody platform, aiming to enhance services for fintech and crypto businesses. These updates include an integration with a transaction screening service, expanded hardware security module (HSM) options, and tokenization capabilities through the XRP Ledger (XRPL).

Top stories in the Crypto Roundup today:

• SEC Charges Cumberland DRW for Operating As an Unregistered Crypto Dealer
• Bitnomial Sues U.S. SEC, Accusing Overreach on XRP Futures Regulation
• Ripple Expands Crypto Custody With New Security Features and XRPL Integration
• Crypto Market Movers – TAO, SUI, WIF

SEC Charges Cumberland DRW for Operating As an Unregistered Crypto Dealer

The U.S. Securities and Exchange Commission (SEC) has filed a civil enforcement action against Chicago-based Cumberland DRW, the crypto-focused subsidiary of DRW Holdings, a diversified trading firm that engages in proprietary trading across various asset classes.

According to the regulator’s complaint, Cumberland engaged in the regular trading of cryptoassets offered and sold as securities since at least March 2018, operating as an unregistered dealer in over $2 billion worth of transactions.

The firm is accused of conducting these trades without complying with the registration requirements outlined in Section 15(a) of the Securities Exchange Act of 1934. The SEC further alleges that Cumberland, which publicly identifies itself as a major liquidity provider in the crypto market, bought and sold these digital assets through its trading platform, Marea, and over-the-counter (OTC) methods.

According to the regulator, the cryptoassets traded were classified as investment contracts, meaning they were treated as securities under U.S. law and that -- despite this classification -- Cumberland did not register as a dealer, as required by law.

The SEC’s complaint, filed in the U.S. District Court for the Northern District of Illinois, seeks permanent injunctive relief against Cumberland, along with the disgorgement of profits, prejudgment interest, and civil penalties.

Responding on social media, Cumberland said that it is not going to make any changes to its business operations or the set of cryptoassets for which it provides liquidity as a result of this action.

Bitnomial Sues U.S. SEC, Accusing Overreach on XRP Futures Regulation

Bitnomial, a Chicago-based cryptocurrency derivatives exchange specializing in physically settled Bitcoin futures and options that was approved by the Commodity Futures Trading Commission (CFTC) to trade cryptocurrency futures in April 2020, has initiated legal action against the SEC, claiming the regulator has overstepped its authority by classifying XRP as a security.

The lawsuit, filed in the U.S. District Court for the Northern District of Illinois on October 10, argues that XRP is already regulated as a commodity by the CFTC and that the SEC's involvement creates an unnecessary regulatory overlap.

In August 2024, Bitnomial filed a self-certification with the CFTC to list XRP futures contracts and, according to the lawsuit, the SEC contacted the exchange shortly after, asserting that XRP futures fall under the category of securities and that Bitnomial would need to register as a securities exchange to move forward.

Bitnomial contends that complying with this demand is not feasible, as Ripple Labs, the company behind XRP, has not registered the token as a security. The lawsuit also references the ongoing legal conflict between the SEC and Ripple Labs, where a ruling in July 2023 rejected the SEC’s stance that XRP traded on secondary markets is a security.

Bitnomial further claims that the SEC’s actions have created a significant burden on its business, preventing it from expanding its offerings in the digital asset space. The exchange is seeking a declaratory judgment from the court, confirming that XRP futures are not securities, as well as an injunction to prevent the SEC from asserting control over its operations.

Ripple Expands Crypto Custody With New Security Features and XRPL Integration

Ripple, a prominent provider of digital asset infrastructure, has announced several key updates to its Ripple Custody platform, aiming to enhance services for fintech and crypto businesses.

These updates include integration with a transaction screening service, expanded hardware security module (HSM) options, and tokenization capabilities through the XRP Ledger (XRPL). Ripple Custody, designed to safeguard digital assets, now also includes pre-configured policy frameworks and improvements to the platform’s usability.

Ripple Custody’s latest update aims to meet the growing demand for secure and compliant digital asset storage solutions, positioning its custody technology as a critical piece of infrastructure for businesses looking to tokenize and manage assets. These assets can range from cryptocurrencies and fiat currencies to real-world assets (RWAs) like property and commodities.

A key highlight of the update is the XRPL integration, which allows businesses to tokenize various assets and securely transfer them within the Ripple ecosystem. Ripple Custody also integrates with XRPL’s decentralized exchange, facilitating low-fee trading of any tokenized asset and creating new liquidity opportunities.

Additional features include AWS CloudHSM support, allowing customers to onboard and deploy HSM on their preferred cloud provider, and integration with Elliptic for real-time transaction screening, which helps businesses assess risks and meet regulatory compliance standards. New compliance integrations are expected to be available in December 2024, with general availability set for early 2025.

Crypto Market Movers – TAO, SUI, WIF

Several tokens are leading the charge in the last 30-day period. Some of these are well-known cryptocurrencies with more liquid trading pairs, so we’ll be focusing on these over low-cap cryptos that may have higher percentage changes.

Sui (SUI) - Sui is a layer-1 blockchain platform designed to cater to the needs of global adoption. It is built on an object-centric data model and utilizes the Move programming language. The platform is developed to address the inefficiencies existing within current blockchain frameworks, presenting itself as a solution for scalability, security, and developer accessibility.

Bittensor (TAO) - Bittensor (TAO) is an ERC-20 digital token that powers a decentralized, blockchain-based machine learning network. Machine learning models train collaboratively and are rewarded in TAO according to the informational value they offer the collective.

Dogwifhat (WIF) - Dogwifhat is a memecoin that operates on the Solana platform. It is a meme cryptocurrency, drawing inspiration from the Dogwifhat meme and is categorised alongside other dog-themed tokens like BONK, FLOKI, and BONE, which have gained popularity recently. The token has seen a significant surge in value, indicating its growing attention in the cryptocurrency community​​.

State of the Crypto by Top Tier Exchange Volume

Build your project with CCDATA

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.