The US Securities and Exchange Commission (SEC) is rolling back 14 proposed rules, including key measures that once targeted the crypto industry.
The decision, announced on June 12, illustrates the shift in regulatory priorities as the agency distances itself from the aggressive stance adopted during the previous administration.
The withdrawn proposals were introduced between March 2022 and November 2023 under former SEC Chair Gary Gensler and had drawn sharp opposition from crypto advocates.
SEC rescinded rules
Two of the rescinded rules would have directly impacted how digital assets are managed and traded in the US.
One rule sought to expand the definition of securities exchanges to cover DeFi platforms. The proposal would have brought a wide range of blockchain-based systems under the SEC’s jurisdiction by classifying them as exchanges.
Another of these rescinded rules targeted crypto custody practice.
The proposal required investment advisers to store all client assets, including digital assets, with qualified custodians.
Under this framework, many established crypto custodians would have failed to meet the SEC’s stricter criteria, leaving only banks and broker-dealers eligible to safeguard assets.
Eleano Terret, former Fox Business journalist, said:
“The Custody Rule aimed to cover all client assets including crypto, broadened what counts as ‘custody,’ and raised concerns about whether certain state chartered entities should be qualified custodians.”
At the time, critics argued that these rules would have imposed undue restrictions on the sector, stifling innovation and driving activity offshore.
Pro-crypto moves
The SEC’s decision to abandon these proposals is part of a broader effort to clarify crypto regulation.
It also aligns with President Donald Trump’s deregulatory push to reduce compliance burdens in both traditional and digital markets.
In recent months, the SEC has dropped several lawsuits against crypto companies, signaling a retreat from the previous regulation-by-enforcement approach.
At the same time, the financial regulator’s new Chair, Paul Atkins, has made concrete efforts to introduce pro-crypto regulations, which are expected to foster responsible innovation in the sector.
The post SEC pulls back from crypto rules proposed under Gary Gensler administration appeared first on CryptoSlate.
