End of Bureaucratic Crackdown on Crypto?
The post End of Bureaucratic Crackdown on Crypto? appeared on BitcoinEthereumNews.com. The US Securities and Exchange Commission (SEC) scrapped several high-profile crypto-related proposals introduced under former Chair Gary Gensler. This development marks a major policy shift under the agency’s new leadership, aligning with President Trump’s pro-crypto stance. SEC Reverses Controversial Crypto Proposals from Gary Gensler’s Tenure The SEC rolled back on the controversial Rule 3b-16 and the expanded Custody Rule. In hindsight, the digital asset industry fiercely opposed both of these directives. The bone of contention for crypto market participants was that the rules threatened to stifle innovation and misclassify decentralized technologies. Against this backdrop, the crypto community, led by Coinbase CLO Paul Grewal, hailed the reversal. Down goes 3b16, qualified custodian, and all the other unfinished Gensler rule proposals. @secgov just issued final notices rescinding them all. — paulgrewal.eth (@iampaulgrewal) June 12, 2025 The move presents a win for blockchain innovation and a repudiation of Gary Gensler’s aggressive regulatory approach. Under the now-defunct Rule 3b-16, the SEC sought to redefine what constitutes an “exchange.” Success in this pursuit would bring DeFi platforms and decentralized protocols under the same regulatory framework as traditional national securities exchanges. Another major rollback was the proposed Custody Rule expansion. It aimed to broaden the definition of “custody” to include nearly all client assets, including crypto. Further, this would require advisers to hold those assets with qualified custodians. This rule raised significant alarm across the crypto sector, as most firms did not qualify under the proposed definitions. Therefore, they would have been compelled to mass restructure or exit the US market. “The SEC just officially scrapped the expanded Custody Rule proposal and Rule 3b-16, plus other Gensler-era rules,” Crypto America podcast host Eleanor Terrett confirmed the agency’s retreat in a post. The regulator also tossed out several compliance-heavy measures, including cybersecurity and ESG reporting requirements for…
The post End of Bureaucratic Crackdown on Crypto? appeared on BitcoinEthereumNews.com.
The US Securities and Exchange Commission (SEC) scrapped several high-profile crypto-related proposals introduced under former Chair Gary Gensler. This development marks a major policy shift under the agency’s new leadership, aligning with President Trump’s pro-crypto stance. SEC Reverses Controversial Crypto Proposals from Gary Gensler’s Tenure The SEC rolled back on the controversial Rule 3b-16 and the expanded Custody Rule. In hindsight, the digital asset industry fiercely opposed both of these directives. The bone of contention for crypto market participants was that the rules threatened to stifle innovation and misclassify decentralized technologies. Against this backdrop, the crypto community, led by Coinbase CLO Paul Grewal, hailed the reversal. Down goes 3b16, qualified custodian, and all the other unfinished Gensler rule proposals. @secgov just issued final notices rescinding them all. — paulgrewal.eth (@iampaulgrewal) June 12, 2025 The move presents a win for blockchain innovation and a repudiation of Gary Gensler’s aggressive regulatory approach. Under the now-defunct Rule 3b-16, the SEC sought to redefine what constitutes an “exchange.” Success in this pursuit would bring DeFi platforms and decentralized protocols under the same regulatory framework as traditional national securities exchanges. Another major rollback was the proposed Custody Rule expansion. It aimed to broaden the definition of “custody” to include nearly all client assets, including crypto. Further, this would require advisers to hold those assets with qualified custodians. This rule raised significant alarm across the crypto sector, as most firms did not qualify under the proposed definitions. Therefore, they would have been compelled to mass restructure or exit the US market. “The SEC just officially scrapped the expanded Custody Rule proposal and Rule 3b-16, plus other Gensler-era rules,” Crypto America podcast host Eleanor Terrett confirmed the agency’s retreat in a post. The regulator also tossed out several compliance-heavy measures, including cybersecurity and ESG reporting requirements for…
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