The U.S. Securities and Exchange Commission (SEC) has issued an exemptive order delaying compliance deadlines for Regulation NMS, which governs U.S. equity trading, until 2026.
While this order is not specific to bitcoin or digital asset markets, it is expected to have significant implications for ongoing legal battles involving major bitcoin exchanges.
SEC order and compliance delays
On October 31, the SEC announced it would postpone key Regulation NMS compliance dates due to a lapse 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 fair-notice defense gains traction
This development offers 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, 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 trades. As Judge Stephanos Bibas stated:
“The SEC repeatedly sues crypto companies for not complying with the law, yet it will not tell them how to comply.”
Structural parallels with bitcoin exchanges
The SEC’s move to delay compliance for traditional markets mirrors the situation faced by bitcoin platforms.
For several years, the agency has brought enforcement actions against exchanges for allegedly operating without proper registration, even though it has yet to finalize clear rules for digital asset trading and custody.
Platforms argue they cannot comply with unwritten standards, and the SEC’s recent actions bolster their case.
Impact on future litigation
The SEC’s order extends compliance relief until at least November 2026 for some rules, giving crypto lawyers a strong precedent for arguing that enforcement should be paused until regulatory clarity is achieved.
As litigation over bitcoin exchange operations continues, this procedural logic is likely to play a central role.
