This article was first published on Deythere.
The U.S. Securities and Exchange Commission (SEC) has issued an exemptive order delaying major compliance deadlines for Regulation NMS (National Market System) rules; a move originally meant for traditional equity markets but which now offers significant tactical ammunition for crypto-exchange litigants.
By creating a space for enforcement when rules are in flux and agencies lack clear guidance, the order may change how the crypto industry argues its cases.
What the SEC Order Means for Equity Markets
The SEC exemptive order delays compliance deadlines for multiple amendments to Regulation NMS. Specifically:
The compliance date for Rules 600(b)(89)(i)(F) and 612; governing amended minimum pricing increments, is now slated for the first business day of November 2026.
Rule 610(c); access-fee caps, is also now moved to November 2026.
Rule 610(d), the requirement that exchange fees be determinable at the time of execution, is pushed to the first business day of February 2026.
The order also grants relief from the requirement to file proposed rule changes to reflect the revised ‘round lot’ definition in Rule 600(b)(93) for 30 days after the end of the appropriations lapse.
According to SEC Chairman Paul S. Atkins, the relief was “necessary to facilitate orderly market functions,” given the funding lapse and ongoing judicial review.
So, the SEC is acknowledging that market participants face compliance pressure when the rule-making and oversight framework is unsettled.
Why This Matters for Crypto Exchanges
Although the consequences of the SEC exemptive order formally apply to traditional equity markets, the logic could be applied to the crypto industry.
Crypto platforms like Coinbase Global, Inc., Kraken Financial and Binance Holdings Ltd. have long argued they were subject to enforcement even though the SEC has not provided clear, final rules on how securities laws apply to digital-asset platforms.
The SEC exemptive order confirms a principle: that when rules are contested and implementation is uncertain, compliance deadlines can be delayed and enforcement paused. That principle can now be cited in crypto-litigation.
In other words, the SEC is giving exchanges a precedent for the argument that “you can’t enforce obligations while standards are unwritten or unclear”.
In short; the same logic that applies to equity exchanges can now strengthen crypto platforms’ claims that enforcement should wait for clarity.
Fair-Notice and Due-Process Defenses Get Stronger
Crypto litigation has seen the “fair-notice” defense, an exchange can’t be punished for conduct if it didn’t have reasonable notice of how to comply.
In January 2025, Judge William H. Orrick III ruled that Kraken “plausibly alleged” lack of notice about how the Howey test applied to secondary token trades. In June 2023, Bittrex, Inc. argued it “didn’t have fair notice” that listing tokens for spot trading triggered registration requirements.
Judge Bibas in the Coinbase concurrence wrote:
“The SEC repeatedly sues crypto companies for not complying with the law, yet it will not tell them how to comply”
The Regulation NMS order shows that even for clearly regulated equity markets, when rule-making is unsettled and appropriations lapse, the SEC grants relief. Crypto platforms can now point to this as an argument that enforcement should be delayed until the rules are final.
Equity-Crypto Parallels
The SEC exemptive order cites three structural factors: a judicial stay denial, a partial agency funding lapse, and participants can’t implement changes by the original deadline.
Crypto exchanges make the same claims. Three years of enforcement under securities law, yet no final crypto-specific rules on custody, listing, trading or exchange registration. Platforms argue they can’t comply with standards that don’t exist in final form.
The SEC’s decision to grant relief to equity markets because participants can’t reasonably implement the changes under current conditions is a strong example. Enforcement without a clear roadmap is under new scrutiny.
So the structural parallel is direct and crypto defendants will likely cite the SEC’s own model.
Conclusion
The SEC exemptive order doesn’t mention blockchain or tokens, but the procedural logic opens a likely path. If the SEC finally finalizes crypto-market-structure rules whether via formal rule-making or settlement frameworks, similar exemptive orders may be issued to give platforms time to build compliant systems.
The delay until February 2026 for some rules and November 2026 for others gives a two-year window of uncertainty.
Crypto litigation in that timeframe will likely focus on motions to stay or preliminary injunctions using the crypto enforcement relief angle.
Lawyers for exchanges will likely cite the Commission’s acknowledgment that delayed compliance serves orderly markets when rules are contested and resources are limited.
Glossary
Exemptive order / exemptive relief: An order by a regulator that temporarily relieves a party or category of parties from compliance with a specified rule or requirement.
Regulation NMS (National Market System): A regulatory framework overseen by the SEC governing the U.S. securities trading system, including pricing increments, access fees, and transparency requirements.
Fair-notice defense: A legal argument that a regulated entity cannot be held liable for violating a law if it did not receive clear notice or guidance on how to comply.
Due-process: Constitutional principle ensuring that regulatory actions follow fair procedures, including giving entities clear rules and adequate notice before enforcement.
Howey test: The legal test derived from the U.S. Supreme Court decision in SEC v. W. J. Howey Co. (1946) to determine whether a transaction qualifies as an “investment contract”; and thus a security, under U.S. law.
Access-fee caps: Limits imposed on the fees that market venues (exchanges) can charge other market participants for access to order-routing or execution services.
Frequently Asked Questions About the New SEC Exemptive Order
Does this SEC exemptive order immediately protect crypto exchanges from all enforcement actions?
No. The SEC exemptive order applies to equity-market rules under Regulation NMS; not directly to crypto platforms. However, the logic may be invoked by crypto defendants in court.
Which crypto exchanges could use this precedent?
Platforms that are subject to enforcement actions by the SEC, for operating unregistered exchanges or trading venues, such as Coinbase, Kraken, and Binance, may cite the example when asserting fair-notice or due-process arguments.
When do the new deadlines take effect?
For Rules 600(b)(89)(i)(F) and 612 and Rule 610(c); November, 2026. For Rule 610(d); February, 2026.
Could the SEC issue similar relief specifically for crypto markets?
Yes. If the SEC eventually finalizes crypto-specific market-structure rules; it may issue exemptive relief giving digital-asset platforms time to implement compliant systems; following the procedural logic of this order.
What to do now?
Review enforcement risks; add fair-notice and due-process to your legal strategy; watch the rule-making clock and prepare for stays or injunctions.
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