The U.S. Securities and Exchange Commission (SEC) has formally repealed several contentious cryptocurrency regulations, including Rule 3b-16 and the expanded Custody Rule.
Industry stakeholders had widely criticized these rules for their potential to hinder blockchain innovation and impose substantial new compliance obligations on crypto firms. The SEC’s decision signifies a significant policy shift under its new leadership towards a more innovation-friendly regulatory environment.
Paul Grewal, Chief Legal Officer at Coinbase, praised the move, calling it a victory for the crypto industry and a notable departure from the more aggressive regulatory stance adopted by former Chair Gary Gensler. He highlighted its potential positive impact.
This regulatory reversal aligns with ongoing legislative initiatives, most notably the proposed CLARITY Act, which aims to establish clearer definitions and guidelines specifically for digital assets. Industry leaders are interpreting the SEC’s action as a deliberate pivot to reduce burdensome requirements and create a more conducive atmosphere for crypto businesses.
Many within the sector view the SEC’s policy shift as a major positive development that could help attract crypto entrepreneurs back to the United States market, fostering growth and competitiveness.