SEC Faces Critical Deadlines in Major Crypto Cases as Agency Shifts Direction

The financial regulator also appears to be easing up or pausing its rafts of ongoing litigation against crypto companies. However, those with imminent deadlines may still be on the table.

“I’m told by multiple legal sources that the SEC has been prioritizing cases with imminent court deadlines, which is one explanation for why we haven’t seen pause requests in the Ripple and Kraken cases,” reported Fox Business’s Eleanor Terrett on Feb. 19.

Ripple’s next court deadline is April 16, Kraken’s is March 31, and the Binance case has been paused until April 1, she added.

Terrett suggested that the agency could be waiting for the confirmation and placement of Paul Atkins as chair.

“In the interim, the crypto task force, Congress, and the Presidential Working Group on Digital Assets are presumably working to fill the regulatory gaps that led to these lawsuits being brought in the first place,” she said.

NEW: On the @SECGov pausing ongoing litigation against #crypto firms — I’m told by multiple legal sources that the SEC has been prioritizing cases with imminent court deadlines, which is one explanation for why we haven’t seen pause requests in the @Ripple and @krakenfx cases.…

— Eleanor Terrett (@EleanorTerrett) February 19, 2025

Trump Rails on the SEC

President Trump has pushed for deregulation of the crypto industry, arguing that it has been hindered by onerous regulations and excessive regulatory burdens.

“So-called independent agencies like the SEC have exercised enormous power over the American people without Presidential oversight,” he said earlier this week.

“These agencies issue rules and regulations that cost billions of dollars and implicate some of the most controversial policy matters. Now they will no longer impose rules on the American people without oversight or accountability,”

This week, the SEC dropped its appeal in a significant legal case involving crypto regulation, specifically withdrawing from a battle over a rule that would have broadly expanded the definition of regulated securities dealers.

Also this week, the US Department of Government Efficiency (DOGE), led by Elon Musk, posted a call to action on X seeking help from the public with “insights on finding and fixing waste, fraud, and abuse relating to the SEC,” in ongoing efforts to defang the regulator.

DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission.

— DOGE SEC (@DOGE_SEC) February 17, 2025

New Crypto Crime Unit

On Feb. 20, the SEC announced a new “Cyber and Emerging Technologies Unit” with the aim of protecting retail investors.

The downsized crypto enforcement unit has been restructured into a broader cyber fraud team led by SEC attorney Laura D’Allaird. It will have about 30 staff members and will focus on various forms of cyber-related fraud, including those involving social media, AI, and blockchain, according to the regulator.

“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce,” said acting Chairman Mark Uyeda.

This change signals a shift from the SEC’s previous aggressive stance on crypto under Gary Gensler, who had pursued hundreds of enforcement actions.