YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has requested an extension of time in its crypto enforcement case against Cumberland DRW, citing the involvement of its crypto task force in shaping enforcement actions.
In a filing with the U.S. District Court for the Northern District of Illinois on February 10, the SEC asked the judge to extend the deadline for responding to Cumberland DRW’s motion to dismiss from February 19 to March 21. The agency stated that the crypto task force’s participation could impact the case’s proceedings.
“The SEC believes that an extension of time is appropriate and will allow the parties to explore a potential resolution of this matter while conserving judicial resources,” the filing stated.
The SEC has also employed a similar strategy in the case against Binance. On February 10, the SEC and Binance filed a joint motion to pause their ongoing legal case for 60 days, citing the role of the SEC Crypto Task Force in shaping regulatory decisions. The motion emphasized that the task force’s work could influence the case’s resolution.
This is the first significant legal pause in a crypto case since Mark Uyeda became acting SEC chair on January 20, 2025. After 60 days, the SEC and Binance plan to review the case and issue a joint report on whether to extend the stay.
“As this is a joint motion, there is no prejudice to any party here, and a stay could save the parties resources because, if an early resolution could be reached, it would obviate the need to continue merits discovery,” the motion stated.
The SEC filed an enforcement action against Cumberland DRW in October 2024, alleging that the firm sold $2 billion worth of crypto while operating as an unregistered dealer.
On February 11, Judge Matthew Kennelly granted the SEC’s motion for a 30-day extension but warned against expecting further extensions.
The SEC’s delay requests raise questions about its approach in other crypto enforcement cases, including those involving Coinbase, Kraken, and Ripple Labs. The SEC’s lawsuit against Coinbase has been put on hold pending a decision from the appellate court. Additionally, Ripple and the SEC have both appealed a $125 million judgment from August 2024.
Former Assistant U.S. Attorney Mark Bini commented on the situation, stating, “It’s clear that the SEC is going to completely shift its enforcement activities as to crypto, and it makes sense that they would pause ongoing major actions like Binance while they await guidance from the SEC’s crypto task force. If the SEC now views most crypto as not being a security, those actions may be terminated entirely.”
The SEC’s crypto task force has a significant impact on the agency’s enforcement approach. Statements made by Acting Chair Mark Uyeda could also influence criminal cases involving allegations of securities law violations. On February 5, former SafeMoon CEO Braden John Karony requested a 30-day delay in his criminal trial’s jury selection, citing recent changes in the SEC’s crypto policies. His legal team pointed to SEC Commissioner Hester Peirce, who suggested that the regulator might offer retroactive relief for specific crypto-related enforcement actions. The SEC’s crypto enforcement strategy is continuously evolving, and the crypto task force now plays a central role in shaping the future of these cases.
