The US Securities and Exchange Commission (SEC) rolls back 14 proposed rules, including important measures that were once aimed at the crypto industry.
The decision, announced on 12 June, illustrates the shift in regulatory priorities, since the agency distinguishes itself from the aggressive attitude adopted during the previous administration.
The withdrawn proposals were introduced between March 2022 and November 2023 under former SEC chairman Gary Gender and had drawn sharp opposition from crypto lawyers.
Sec withdrawn rules
Two of the withdrawn rules would have had a direct influence on how digital assets are managed and traded in the US.
One rule wanted to expand the definition of securities fairs to cover Defi platforms. The proposal is said to have brought a wide range of blockchain-based systems under the jurisdiction of the SEC by classifying them as exchanges.
Another of these withdrawn rules was aimed at crypto guardianship practice.
The proposal required investment advisers to store all assets of the customer, including digital assets, with qualified custodians.
According to this framework, many established crypto managers would not have met the stricter criteria of the SEC, which means that only banks and broker dealers are eligible to protect assets.
Eleano Terret, former Fox Business Journalist, said:
“The custody rule was intended to cover all client assets, including crypto,, broadened what as ‘custody’ counts, and released concern about whether certain state should be qualified entities qualified preservators.”
At the time, critics argued that these rules would have imposed unnecessary restrictions on the sector, suffocating innovation and managing activities offshore.
Pro-Crypto moves
The decision of the SEC to give these proposals is part of a broader effort to clarify the crypto regulation.
It also corresponds to President Donald Trump’s deregulating push to reduce compliance tax in both traditional and digital markets.
In recent months, the SEC has dropped different lawsuits against crypto companies, which indicates a retreat of the previous approach to the regulations by the previous regulations.
At the same time, the new chairman of the financial regulator, Paul Atkins, has made concrete efforts to introduce pro-Crypto regulations, which is expected to promote responsible innovation in the sector.