Yerevan (CoinChapter.com) - The U.S. Securities and Exchange Commission (SEC) has asked for more time in its crypto enforcement case against Cumberland DRW, citing its Crypto Task Force’s role in shaping the enforcement action.
In a Feb. 10 filing with the U.S. District Court for the Northern District of Illinois, the SEC asked a judge to extend its deadline for responding to Cumberland DRW’s motion to dismiss from Feb. 19 to March 21. The agency said the involvement of the Crypto Task Force could affect the case’s progress.
“The SEC believes that an extension of time is appropriate and will allow the parties to explore options for a potential resolution of this matter while preserving legal resources,” the filing reads.
SEC takes similar approach in Binance case
The SEC and Binance filed a joint motion on Feb. 10 to suspend their ongoing legal proceedings for 60 days, citing the SEC’s Crypto Task Force’s role in shaping regulatory decisions. The motion states that the Crypto Task Force’s work could affect the resolution of the case.
“The work of this task force may influence and facilitate the potential resolution of this case,” the SEC and Binance wrote.
This is the first major legal stay in a crypto case since Mark Uyeda became SEC chairman 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.
“Because this is a joint motion, there is no prejudice to either party and a stay may conserve resources for each party because there would be no need to continue the substantive investigation if an early resolution could be achieved,” the motion reads.
SEC's Complaints Against Cumberland DRW
The SEC filed an enforcement action against Cumberland DRW in October 2024, alleging that the company sold $2 billion worth of cryptocurrency while acting 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.
SEC’s Crypto Enforcement Cases: Coinbase, Kraken, Ripple
The SEC’s request for an extension raises questions about how it will proceed in other crypto enforcement cases, including those against Coinbase, Kraken and Ripple Labs. The SEC lawsuit against Coinbase has been paused pending a decision by an appeals court. Meanwhile, both Ripple and the SEC are appealing a $125 million judgment due in August 2024.
Former Assistant U.S. Attorney Mark Bini commented on the situation:
“It’s clear that the SEC is going to completely change its enforcement activities around crypto, and it makes sense that they would pause major ongoing actions like Binance and await guidance from the SEC’s Crypto Task Force. If the SEC now believes that most cryptocurrencies are not securities, those actions may be terminated entirely.”
The impact of the SEC’s crypto task force on ongoing cases
The SEC’s crypto task force plays a role in shaping the agency’s approach to enforcement. With Commissioner Mark Uyeda taking over as interim SEC chairman, the commission’s public statements could also influence criminal cases involving allegations of securities law violations.
As a result, former SafeMoon CEO Braden John Karony requested a 30-day delay in jury selection for his criminal trial, citing recent changes in the SEC’s crypto policy. As such, his legal team pointed to comments from SEC Commissioner Hester Peirce, who suggested the regulator could provide retroactive relief for specific crypto-related enforcement actions.
Meanwhile, the SEC’s crypto enforcement strategy continues to shift. As a result, the Crypto Task Force now plays a central role in shaping the future of these cases.