Late on Friday, legal representatives from the U.S. Securities and Exchange Commission and Binance submitted a joint status update to a federal judge, requesting a 60-day extension of the current 60-day stay in the ongoing case.
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The Overview
This week, we learned of two additional cases involving the Securities and Exchange Commission (SEC). The first relates to Binance, which last had its case paused in February, and late Friday, the legal teams requested another delay to pursue ongoing discussions. In another matter, Nova Labs reached a settlement with the SEC over allegations made against them.
Significance
As we observe the SEC refining its stance on digital asset matters, the approach it takes towards its ongoing litigation will serve as a critical indicator of its strategy moving forward.
Breaking Down the Request
On Friday, attorneys representing the SEC, Binance, founder Changpeng Zhao, Binance.US, and other involved parties filed a joint motion with the presiding federal judge, seeking to prolong the existing stay, originally set to expire on Monday, by an additional 60 days.
The SEC’s initial request for the stay was made to gauge how the agency’s newly established crypto task force may influence the treatment of digital assets and the enforcement of securities regulations. The recent filing reiterated this point, stating that the task force’s efforts “may affect” the SEC’s positions in the ongoing litigation. The earlier stay was due to conclude on April 14.
In a separate proceeding, the SEC presented a motion for a consent judgment indicative of a settlement reached with Nova Labs, the entity behind Helium. Under the terms of the proposal, Nova Labs would fork over $200,000 without admitting to or denying the allegations against it.
The SEC originally filed a lawsuit against Nova Labs in January 2025—specifically, on January 17, 2025, just three days before Donald Trump was inaugurated as the 47th President of the United States.
It is likely that there are additional cases or investigations being resolved that may not have been captured yet; if you’ve received a Wells Notice that has now been addressed, please reach out—we’re quite interested. Feel free to respond to this email or contact me via Telegram or Signal.
- DOJ Disbands Crypto Unit Amid Regulatory Retreat: The Department of Justice has disbanded its National Cryptocurrency Enforcement Team, instructing prosecutors not to proceed with cases that would require adjudication of what qualifies as a security or commodity within the digital asset space. More details to come next week.
- Inside North Korea’s Crypto Laundering Preferences: THORChain: THORChain and its associated wallets have gained traction among North Korean cybercriminals for laundering funds siphoned from other cryptocurrency initiatives. The network’s operators have chosen not to block transactions related to the Bybit theft from February.
- SEC Greenlights Trading of Ether ETF Options: This week, the SEC has yet to approve any fresh exchange-traded products for tokens like Solana or Litecoin ETFs but has authorized the trading of ether ETF options.
- New SEC Guidance Calls for Detailed Crypto Token Disclosures: A recent statement from SEC staff, ahead of its second crypto roundtable discussion, highlighted various elements observed in the disclosures from crypto firms launching registered security products.
- U.S. Senate Confirms Paul Atkins as New SEC Chair: In a related development, the Senate has confirmed Trump’s nominee, Paul Atkins, to take over as chair of the SEC, although he hadn’t been sworn in by 1:00 p.m. ET Friday.
- Ex-Ethereum Developer Virgil Griffith Released, Pursuing Pardon: Virgil Griffith, an Ethereum developer who pled guilty to violating sanctions laws and received a 56-month prison sentence, is now out of prison and living in a halfway house as he seeks a pardon, as confirmed by one of his attorneys.
- President Trump Signs Law Revoking IRS Crypto Regulation Targeting DeFi: The President has approved a joint resolution from both the House and Senate that nullifies the IRS’s DeFi broker rule under the Congressional Review Act, effectively preventing the IRS from proposing a similar regulation in the future. This marks the first crypto-specific legislation Trump has enacted since assuming office, representing a significant event for the crypto sector.
- 20% of Cross-Chain Crypto Investigations Involve Over 10 Blockchains, Says Elliptic: According to blockchain analytics firm Elliptic, 20% of investigations involving funds transferred across different chains now touch upon at least ten distinct networks.
- Ripple and SEC Jointly File to Pause Ongoing Appeals: Ripple and the SEC have jointly requested a pause on their active appeals, following last month’s announcement of an agreement to entirely resolve the case.
- Block Settles for $40M with New York Over Inadequate Anti-Money Laundering Controls: Block has reached an accord with the New York Attorney General’s office relating to allegations of insufficient anti-money laundering processes for its Cash App.
- Judge Denies Most of DCG’s Motion to Dismiss Attorney General’s Civil Securities Fraud Case: A ruling from a New York state judge dismissed two claims from the New York Attorney General against Digital Currency Group and its executives, but allowed the majority of the lawsuit to proceed as of late Friday.
Wednesday
- 14:00 UTC (10:00 a.m. ET) The House Financial Services Committee held a hearing to discuss topics ahead of an anticipated market structure bill concerning cryptocurrency.
- 18:00 UTC (2:00 p.m. ET) The House Agriculture Committee also convened to discuss similar subjects.
Thursday
- 14:00 UTC (10:00 a.m. ET) The Senate Banking Committee held a confirmation hearing on several nominees, including Michelle Bowman, nominated for Vice Chair for Supervision at the Federal Reserve. While she faced a few questions regarding the regulatory response to the Silicon Valley Bank’s collapse, the discussion lacked significant focus on cryptocurrency.
- 14:30 UTC (10:30 a.m. ET) A status conference for the Department of Justice’s case against Do Kwon took place, with his trial now pushed to February 2026. Prosecutors indicated that a DOJ memo released earlier in the week would not influence the case.
Friday
- 17:00 UTC (1:00 p.m. ET) The U.S. Securities and Exchange Commission held its second crypto roundtable, this time discussing trading rules. Acting SEC Chair Mark Uyeda indicated in recorded comments that the agency may consider an interim regulatory framework for businesses until more permanent regulations are established.
- (CNN) On Monday, pseudonymous X (formerly Twitter) accounts circulated information regarding a “90-day pause in tariffs” that surged the markets, only for the White House to refute the assertion, which appeared to stem from a misinterpretation of remarks made by White House official Kevin Hassett during a Fox News interview.
- (CNN) Wednesday saw U.S. President Donald Trump announce a 90-day halt on elevated tariff rates against various nations, maintaining a 10% tariff rate he initially introduced last week. The tariff rates concerning China increased to 125% (later clarified to 145%).
- (CNBC) The U.S. stock market experienced an “historically volatile week” with significant ups and downs as traders reacted to the potential impacts of new U.S. tariffs on global trade.
- (Reuters) Howmet Aerospace, an aircraft parts supplier based in Pittsburgh, alert its customers that U.S. tariffs could lead to pauses in some shipments.
- (Bloomberg) Website owners reported that Google’s new feature generating AI-based answers has significantly decreased traffic to their sites, although Google has denied this claim.
If you have any thoughts or suggestions on topics to address next week or any feedback you would like to share, don’t hesitate to contact me at nik@coindesk.com or find me on Bluesky @nikhileshde.bsky.social.
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See you all next week!