The US Securities and Exchange Commission has canceled a slate of the agency’s rules under the Biden administration, including two related to crypto detention and exchanges.
Second Said On Thursday, it was “withdrawing some notices of the proposed rules” which was issued between March 2022 and November 2023 under former president Gary Gensler.
The agency stated that it “intends to issue the final rule in relation to these proposals,” and new rules will be proposed, it should change its stance in future regulatory action.
It is the latest regulator Rollback of President Donald Trump, which has promised Crypto and traditional markets widely promised.
Paul Grewal, Chief Legal Officer of Coinbase Posted From x.
Exchange definition rules disabled
Out of 14 rules withdrawn by SEC Was Rule 3 B -16, which would have expanded the definition of “exchange” to include decentralized finance protocols and to tighten crypto detention standards for investment advisors.
Amendment has defined some words used in the definition of “exchange” to include the system that offers the use of non-firm trading interest and communication protocols to bring buyers and sellers of securities together. ”
In comprehensive statement, several decentralized finance (DEFI) protocols can be seen classified as securities exchanges.
The SEC first published the amendments proposed for Rule 3B -16 under the Exchange Act in March 2022.
Then-Acting SEC Chair Mark Uyda Proposed abandonment The rule changes to expand the definition of “alternative trading systems” to include crypto firms in March.
Crypto detention rule canceled
SEC too Killed A rule was proposed in March 2023 that required custody for Crypto.
The proposed Safety Advisory Client Assets Rules of SEC would have expanded the current custody rules under the 1940 Investment Advisory Act. It was widely designed to apply to all clients assets, but was particularly important for crypto as it aims to bring digital assets more clearly. Custody requirements,
Investment firms will need to keep all customer assets, including Crypto, with “qualified mentor”, which means usually done from regulated banks or broker-dealers.
Most crypto exchanges and wallet providers did not meet the definition of “qualified mentor”, which could force advisors to change the providers or get out of space.
Connected: Pham of CFTC says it will not give anyone a ‘easy road’, Crypto is involved
In March, Uyda Asked his staff Possibly proposed crypto detention rules to look to withdraw.
🚨 Latest: SEC withdraws several regulatory proposals including Rule 3B -16 for DEFI exchanges, officially extended custody rules, and increases ESG reporting requirements from the Gainser era. pic.twitter.com/v0jo3fkk8h
– Cointelegraph (@Cointelegraph) June 13, 2025
Other rules canceled
Other rules withdrawn by the regulator included Reporting Rules for Cyber Safety Risk Management and Investment Advisors and Funds, which were implications for Crypto Fund Managers and Digital Asset Custodians.
A rule for status reporting for large safety-based swaps is affecting institutions with potentially large Crypto derivatives Exposure, was also withdrawn.
The regulator also extended public companies to comply with ESG (environment, social and governance) reporting requirements.
magazine: Elon Musk Dogcoin pump incoming? Sol touched to hit $ 300 in 2025: Trade Secrets
