The U.S. Securities and Exchange Commission has formally withdrawn 14 proposed regulatory rules from the Gary Gensler era, easing compliance burdens for cryptocurrency businesses. This rollback includes controversial proposals like Exchange Act Rule 3b-16 and the crypto custody rule, both criticized for stifling industry innovation.
Industry leaders welcomed the move as a significant policy shift. Coinbase Chief Legal Officer Paul Grewal described the withdrawal as “a positive step toward regulatory clarity,” while ConsenSys director Bill Hughes called it “a win for American innovation.” Their endorsements highlight growing optimism about improved regulator-industry relations.
Acting SEC Chair Mark T. Uyeda emphasized the commission’s pivot from aggressive enforcement to constructive engagement with crypto stakeholders. This approach aims to foster collaborative solutions while maintaining market integrity.
The regulatory retreat is expected to reduce legal uncertainty and stimulate investment across decentralized finance and broader crypto markets. Analysts anticipate increased capital allocation toward blockchain infrastructure projects previously hindered by compliance concerns.
Despite the rule withdrawals, the SEC reiterated its commitment to developing tailored regulations that protect investors without impeding technological advancement. The commission maintains that balanced frameworks remain essential for sustainable industry growth.