The U.S. Securities and Exchange Commission (SEC), now led by Chair Paul Atkins, has formally withdrawn 14 proposed cryptocurrency regulations introduced during the previous administration of Gary Gensler.
These withdrawn proposals had sought to expand oversight over decentralized finance (DeFi) platforms and crypto exchanges. The rollback underscores a significant shift toward deregulation within the SEC.
The withdrawal is intended to decrease compliance burdens and associated costs for cryptocurrency businesses operating in the United States. This move is widely interpreted as an effort to foster greater innovation and growth within the domestic crypto ecosystem.
The change in SEC leadership and policy direction reflects a departure from the stricter regulatory stance previously observed. It is anticipated this shift could help reverse the trend of capital outflows and talent migration away from the U.S. that occurred under the tighter regulatory environment.
Lower compliance barriers are expected to facilitate increased participation from institutional investors. This potential influx could boost liquidity and trading volumes for major digital assets such as Bitcoin and Ethereum.
The SEC, while pursuing deregulation through these withdrawals, reiterated an ongoing commitment to market transparency and investor protection. This balance hinges on achieving regulatory clarity while supporting technological advancement in the crypto sector.