Trump’s SEC scraps Gensler-era crypto regulation by enforcement proposals
The post Trump’s SEC scraps Gensler-era crypto regulation by enforcement proposals appeared on BitcoinEthereumNews.com.
The US Securities and Exchange Commission (SEC) has withdrawn multiple anti-crypto rules proposed during the administration of its former chair, Gary Gensler. Coinbase chief legal officer Paul Grewal shared the development on X, noting that Rule 3b-16 and several others are now gone. Rule 3b-16 is meant to expand the definition of an “exchange” to include DeFi protocols. This would have been possible due to the amendment defining an exchange to include “systems that offer the use of non-firm trading interest and communication protocols to bring together buyers and sellers of securities.” At the time, the proposal faced several pushbacks from the crypto community, with many calling for the regulator to remove the changes due to the impact it could have on crypto innovation. While the withdrawal is now happening under the new SEC Chair, Paul Atkins, talks of the SEC abandoning the rule have started since Gensler left the regulator. Former SEC acting chair Mark Uyeda noted a few months ago that he had advised the SEC staff to abandon part of the rule affecting crypto because the original proposal was meant to address alternative trading systems for the treasury markets. SEC withdraws crypto custody rules and others Meanwhile, the SEC also withdrew several other proposed rules, including those that are not necessarily impacting the crypto market. A major rescinded proposal was the Safeguarding Advisory Client Assets rule that increased custody requirements for crypto. Under the proposal, which would have applied to all investment advisers, firms must hold all client assets, including crypto, with a qualified custodian. This would have proven challenging for crypto investment firms, which usually hold cryptocurrencies in exchanges and wallets, entities that do not meet the criteria of qualified custodians. Uyeda was also involved in the efforts to withdraw this proposed rule, as he stated…
Filed under: News - @ June 14, 2025 11:26 am