The U.S. Securities and Exchange Commission (SEC) repealed significant rules regarding crypto custody and DeFi platforms, opening new prospects for the market.
Changes in SEC Rules
On June 13, the SEC decided to repeal rules related to expanded custody of crypto assets and DeFi exchanges. This includes the rescission of Rule 3b-16, which targeted DeFi exchanges classification as securities exchanges, and the dismissal of proposed ESG disclosure requirements for listed entities.
Market Reaction and Predictions
With the repeal of the rules, banks and institutions are positioned to offer digital asset custody on a broader scale. The repeal of previous mandates creates conditions for potential market growth. Market reactions have been positive, with support from industry leaders. Rob Nichols of the ABA noted that this decision fosters legal clarity and innovation, leading to safer channels for managing digital assets.
Historical Context and Data Analysis
According to CoinMarketCap data as of June 13, Bitcoin (BTC) is priced at $104,405.30 with a market cap of $2.07 trillion. In prior days, Bitcoin experienced a trading volume shift of -2.97%, but a slight rebound of +1.57% has been noted over the past week. Research indicates that the repeal of similar regulatory constraints in the past, such as the 2021 amendments in other jurisdictions, led to a 30% increase in institutional participation in cryptocurrency over the following year.
The SEC's repeal of rules could be a key factor in driving increased institutional participation in cryptocurrency markets. The relaxation of regulations opens opportunities for innovation and financial technology development.
