SEC just gave crypto lawyers a new way to win in court

The SEC issued an exemptive order delaying compliance deadlines for Regulation NMS until 2026, citing the need for orderly market functions amid funding lapses and judicial review. This action provides significant ammunition for crypto exchanges like Coinbase, Kraken, and Binance, who have been arguing a "fair notice" or due process defense in court. These platforms contend that the SEC cannot enforce securities laws against them without first providing clear, finalized rules on how to comply in the crypto context. The Reg NMS relief mirrors the logic crypto defendants have been using: enforcement without workable standards or regulatory clarity creates chaos, justifying a pause in compliance. Crypto litigators are expected to cite this order—which acknowledges the need for delayed compliance when rules are contested and resources constrained—in future motions and briefs, effectively using the SEC's own actions to support their arguments against current enforcement actions.

(Source：CryptoSlate)