The post Gary Gensler’s Crypto Crackdown Ends: Trump’s SEC Scraps 14 Rules appeared first on Coinpedia Fintech News
Donald Trump’s return to power is already sending shockwaves through the crypto industry — but this time, in a good way.
After promising pro-crypto reforms during his campaign, Trump has now followed through. His administration has officially rolled back at least 14 controversial crypto rules introduced under former SEC Chair Gary Gensler — signaling what many believe is the start of a new deregulatory era for crypto in the U.S.
US SEC Under Paul Atkins Withdraws 14 Gensler-Era Crypto Rules
In a major move aligning with President Trump’s pro-crypto and deregulatory agenda, the U.S. Securities and Exchange Commission (SEC), now led by crypto-friendly Chair Paul S. Atkins, has withdrawn multiple rules that were considered harmful to digital asset innovation.
Most of these policies, introduced between March 2022 and November 2023 during Gensler’s tenure, were seen as overreaching and restrictive.
Why These Withdrawals Matter
The previous Biden administration maintained a conservative and skeptical stance toward crypto. Gensler’s SEC took an aggressive regulatory approach that many in the industry labeled as hostile — targeting DeFi platforms, custodians, crypto derivatives, and more.
Trump vowed to dismantle these roadblocks. Now, he’s making good on that promise.
Top Gensler-Era Rules Now Scrapped
Here are the key rules that have been rolled back, bringing relief to the crypto industry:
Rule 3b-16 — DeFi in the Crosshairs
- Would have expanded the definition of “exchange” to include DeFi protocols and platforms facilitating communication between buyers and sellers.
- Its withdrawal is seen as a win for decentralized finance.
Qualified Custodian Rule
- Would have restricted crypto custody to traditional financial institutions like banks or broker-dealers.
- This would’ve effectively excluded most crypto-native exchanges and wallet providers.
Cybersecurity & Risk Management Rules
- Aimed at investment advisers and funds, including those handling crypto.
- Would have imposed stricter cybersecurity frameworks and regular incident disclosures.
Large Swap Position Reporting
- Required firms dealing in crypto-related swaps to report detailed position data.
- Many crypto funds saw this as onerous and unnecessary.
ESG Reporting Mandate
- Would have forced public companies to disclose extensive Environmental, Social, and Governance (ESG) metrics.
- Critics argued it added non-crypto-related burdens that hinder innovation.
Coinbase and Industry Leaders Celebrate
Crypto leaders quickly voiced support. Coinbase Chief Legal Officer Paul Grewal cheered the move on X, posting:
“Down goes 3b-16, qualified custodian, and all the other unfinished Gensler rule proposals.”
The sentiment is shared across the crypto industry, as many view this as a turning point for regulatory clarity in the U.S.
What’s Next for US Crypto Regulation?
Although these Gensler-era rules are now off the table, the SEC under Atkins may propose new, industry-friendly regulations in the future — but only after open consultation with stakeholders.
For now, the message is clear: Crypto has a seat at the table under Trump’s administration, and unnecessary barriers are being dismantled.
Bottom Line
With Gensler’s policies getting tossed and pro-crypto voices leading the charge, this moment could mark the true beginning of America’s crypto renaissance.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Gensler’s rules were seen as overreaching and restrictive, targeting DeFi, custodians, and derivatives, which many in the crypto industry viewed as hostile and hindering innovation.
The SEC under Trump has scrapped Rule 3b-16 (DeFi), the Qualified Custodian Rule, Cybersecurity & Risk Management Rules, Large Swap Position Reporting, and ESG Reporting.
While Gensler-era rules are gone, the SEC under Atkins may propose new, industry-friendly regulations after consultation, aiming to dismantle unnecessary barriers for crypto. Sources
