The United States Securities and Exchange Commission (SEC) has requested additional time to respond to a motion to dismiss one of its enforcement actions against a cryptocurrency company, citing the potential impact of its recently formed crypto task force on the legal process.
Request for Time Extension
On February 10, the commission filed a motion in the U.S. District Court for the Northern District of Illinois to extend the deadline to respond to Cumberland DRW’s motion to dismiss from February 19 to March 21. According to the SEC, its crypto task force may facilitate the resolution of this case.
Shift in Priorities Under New SEC Leadership?
It remains unclear if the SEC will apply the same delay tactic to its other crypto-related cases, including those against Coinbase, Kraken, and Ripple Labs. Some cases, such as the civil case against Coinbase, are already stayed pending an appellate court decision. Former Assistant U.S. Attorney Mark Bini noted this delay might indicate a shift in the commission's crypto enforcement approach.
Impact on Other Cases
Public statements from the regulator under Acting Chair Mark Uyeda's leadership may also influence criminal cases involving securities law violations. For instance, former SafeMoon CEO Braden John Karony requested a delay in his trial, citing significant changes in SEC policies.
The SEC continues to assess its regulatory stance on cryptocurrencies, navigating through legal complexities in the process. The future actions of the commission could significantly impact the market and ongoing litigation.
