#SEC Withdraws Gary Gensler Era #DeFi and Custody Rules


The SEC has officially abandoned multiple proposed regulations targeting decentralized finance platforms and #crypto custody services.


These proposals emerged during former Chair Gary Gensler's tenure, which emphasized aggressive enforcement over clear regulatory guidance.


The withdrawn Exchange Act Rule 3b-16 amendment would have expanded exchange definitions to include #DeFi platforms under traditional securities exchange oversight.


Industry experts at Paradigm previously criticized the approach, calling for genuine engagement with the #DeFi sector rather than broad regulatory overreach.


Another rescinded proposal aimed to mandate investment advisors keep crypto assets with qualified custodians, potentially limiting banking partnerships in the sector.


Acting SEC Chair Mark Uyeda directed staff to revisit these proposals in March following significant industry pushback.


The commission also withdrew cybersecurity and ESG requirements for investment firms introduced during Gensler's leadership.


Current SEC Chair Paul Atkins supports DeFi innovation and describes self custody as a foundational American value that extends to digital assets.

image
June 13, 2025 at 1:56 PM
7