The U.S. Securities and Exchange Commission (SEC) has issued an exemption order extending to 2026 the deadlines for compliance with the NMS regulations, which govern the trading of U.S. stocks.
While this order is not specific to the Bitcoin or digital asset markets, it is expected to have significant implications on ongoing legal battles involving major Bitcoin exchanges.
SEC Order and Compliance Delays
On October 31, the SEC announced that it would postpone key regulatory NMS compliance dates due to a disruption in government funding and ongoing legal reviews.
Chairman Paul Atkins described the move as necessary procedural relief for traditional exchanges facing new rules on tick sizes and access fees amid a partial government shutdown.
The defense of notice is gaining ground
This development provides digital asset exchanges, such as Coinbase), Kraken, and Binance, additional grounds for their “fair notice” and due process defenses.
These companies argue that, without clear guidance on how securities laws apply to bitcoin and digital assets, the enforcement actions violate constitutional protections.
In January 2025, Judge William Orrick allowed Kraken’s defense to proceed, citing a lack of clarity around the Howey test and token swaps. As Judge Stephanos Bibas stated:
“The SEC is repeatedly suing crypto companies for not complying with the law, but it won’t tell them how to comply.”
Structural parallels with Bitcoin exchanges
The SEC’s decision to delay compliance from traditional markets reflects the situation facing Bitcoin platforms.
For several years, the agency has taken enforcement action against exchanges for allegedly operating without proper registration, although it has yet to finalize clear rules for trading and custody of digital assets.
Platforms claim they cannot comply with unwritten standards, and the SEC’s recent actions strengthen their arguments.
Impact on future litigation
The SEC order extends compliance relief until at least November 2026 for certain rules, giving crypto lawyers strong precedent to argue that enforcement should be suspended until regulatory clarity is achieved.
As litigation over bitcoin exchange operations continues, this procedural logic is likely to play a central role.
