YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has requested an extension in its crypto enforcement case against Cumberland DRW, citing the influence 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 its response to Cumberland DRW’s motion to dismiss from February 19 to March 21. The agency stated that the involvement of the crypto task force could impact the proceedings of the case.
“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 employed a similar strategy in the Binance case. On February 10, the SEC and Binance jointly filed a 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 stated that the task force’s work could influence the resolution of the case.
“This task force’s work may impact and facilitate the potential resolution of this case,” the SEC and Binance wrote.
This marks the first significant legal pause in a crypto case since Mark Uyeda assumed the role of acting SEC chair on January 20, 2025. The SEC and Binance plan to review the case after 60 days 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 cautioned against expecting further extensions.
The SEC’s delay requests raise questions about how it will proceed in other crypto enforcement cases, including those against Coinbase, Kraken, and Ripple Labs. The SEC’s lawsuit against Coinbase has been put on hold pending a decision from the appellate court. Meanwhile, 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:
“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 shaping the agency’s enforcement approach. The commission’s public statements under 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.
Meanwhile, the SEC’s crypto enforcement strategy continues to shift, and the crypto task force now plays a central role in shaping the future of these cases.