YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has requested more time in its crypto enforcement case against Cumberland DRW, citing the role of its crypto task force in shaping enforcement actions.
In a Feb. 10 filing with the U.S. District Court for the Northern District of Illinois, the SEC asked the judge to extend its deadline to respond to Cumberland DRW’s motion to dismiss from Feb. 19 to March 21. The agency said the crypto task force’s involvement could influence how the case proceeds.
“The SEC believes that an enlargement of time is appropriate and will allow the parties to explore a potential resolution of this matter while conserving judicial resources,”
the filing stated.
SEC Uses Similar Strategy in Binance Case
The SEC and Binance filed a joint motion on Feb. 10 to pause their ongoing legal case for 60 days, citing the SEC Crypto Task Force’s role in shaping regulatory decisions. The motion states that the task force’s work could influence the resolution of the case.
“The work of this task force may impact and facilitate the potential resolution of this case,”
the SEC and Binance wrote.
This marks the first major legal pause in a crypto case since Mark Uyeda became acting SEC chair on Jan. 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.
SEC’s Allegations Against Cumberland DRW
The SEC filed an enforcement action against Cumberland DRW in October 2024, claiming that the firm sold $2 billion worth of crypto while operating as an unregistered dealer.
On Feb. 11, Judge Matthew Kennelly granted the SEC’s motion for a 30-day extension but warned that further extensions should not be expected.
SEC’s Crypto Enforcement Cases: Coinbase, Kraken, Ripple
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.”
Impact of SEC’s Crypto Task Force on Ongoing Cases
The SEC’s crypto task force plays a role in 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 Feb. 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. Therefore, 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. As a result, the crypto task force now plays a central role in shaping the future of these cases.
