SEC Delays Crypto, Equity Market Rules Until 2026
The Securities and Exchange Commission (SEC) has issued an exemptive order, granting a reprieve to crypto exchanges and traditional equity markets. The order, dated October 31, 2023, delays compliance deadlines for US equity trading rules until 2026, citing appropriations lapses and the need for orderly market functions.
Chairman Paul Atkins explained the delay, attributing it to appropriations lapses and the necessity for orderly market functions. The exemptive order provides crypto exchanges with a legal precedent to argue for relief in ongoing enforcement cases. Kraken, Bittrex, and Binance have already raised fair-notice defenses in their SEC enforcement cases, with Judge William Orrick allowing Kraken's defense to proceed in January 2025.
The order postpones compliance deadlines for US equity trading rules until February and November 2026. This includes tick-size rules, access-fee caps, and transparency mandates for traditional exchanges, giving Nasdaq and the New York Stock Exchange breathing room while appropriations remain frozen. Crypto lawyers now have a roadmap for litigation that leads through the exemptive-relief process, with the order establishing a framework that crypto platforms can cite in ongoing litigation.
The SEC's exemptive order, issued on October 31, 2023, delays Regulation NMS compliance deadlines for both crypto exchanges and traditional equity markets until 2026. This move provides much-needed relief and a clear path for litigation, affecting ongoing enforcement cases and market operations.
