Cumberland stops Filecoin after SEC warning
Cumberland decided to stop trading Filecoin. This decision was taken after the warning SEC issued in recent weeks regarding Filecoin not meeting the criteria for an investment contract.
Cumberland decided to stop trading Filecoin. This decision was taken after the warning SEC issued in recent weeks regarding Filecoin not meeting the criteria for an investment contract.
Many companies are forced to take a step back due to the lack of clarity The US Securities and Exchange Commission’s (SEC) provided. It appears that the recent crackdown on cryptocurrencies also contributed to this. Cumberland customers received a warning on Tuesday stating that the company would stop trading the token used by the decentralized storage platform Filecoin with its OTC counterparts.
According to The Block the firm said that all FIL transactions executed before 18:00 on June 1 will be executed in accordance with the normal processes under the Master Purchase Agreement.
The company has turned its finger to the SEC
The statement of the company officials includes facts such as why they had to stop over-the-counter trading as a precautionary measure due to the “regulatory environment”. There has been no further comment on the matter for now.
Cumberland’s specific concerns regarding Filecoin transactions have yet to be disclosed. However the move comes at a time of heightened regulatory scrutiny on cryptocurrency market participants in the US and the withdrawal of some of the firm’s competitors.
SEC warns Grayscale on Filecoin
World’s largest digital investment company Grayscale Investments recently announced that the US Securities and Exchange Commission (SEC) has requested that the company withdraw its application for the Filecoin product. This request was said to have been made because the SEC concluded that Filecoin did not meet the criteria to be classified as an investment contract.
Grayscale’s response to the SEC’s warning was to state that FIL cannot be characterized as an investment contract.
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