13.06.2025 09:47

The U.S. Securities and Exchange Commission (SEC) has reversed course on several significant regulatory proposals implemented under former Chair Gary Gensler, signaling a potential shift in its approach to the cryptocurrency industry. These withdrawn proposals, impacting both decentralized finance (DeFi) and cryptocurrency custody, have been met with relief by many in the crypto community.

Specifically, the SEC rescinded a proposal that would have dramatically expanded the definition of an "exchange" under Rule 3b-16. This expansive interpretation threatened to bring DeFi platforms under the same regulatory umbrella as traditional exchanges, a move that faced considerable backlash from the industry due to the potential for stifling innovation and imposing overly burdensome compliance requirements on decentralized protocols.

Furthermore, the SEC withdrew a proposed rule mandating that investment advisors hold client crypto assets only with qualified custodians. This decision addresses concerns raised about limiting investor choice and potentially hindering the growth of self-custody solutions. The withdrawal of these rules indicates a potential reevaluation of the SEC's regulatory strategy, suggesting a greater willingness to consider the unique characteristics of the crypto ecosystem.

This reversal marks a significant moment for the cryptocurrency industry, potentially fostering a more collaborative regulatory environment. Experts from various sources on the internet highlight the importance of balancing investor protection with the promotion of technological advancement within the evolving crypto space. The change in direction suggests a greater focus on fostering innovation while maintaining appropriate safeguards for investors.