The U.S. Securities and Exchange Commission (SEC) announced the withdrawal of several proposed rules addressing cryptocurrency regulations and decentralized finance platforms.
Withdrawal of SEC Proposed Rules
On June 12, the SEC announced it is rescinding 14 proposed rules issued between March 2022 and November 2023 under former SEC Chair Gary Gensler. Among these were proposals to expand SEC's oversight of digital asset markets.
Implications for the Cryptocurrency Market
One significant move is the withdrawal of amendments to Rule 3b-16, which sought to broaden the definition of 'exchange' to include DeFi systems. This rule would have categorized platforms using non-firm trading interest as securities exchanges.
Expert Opinions on the New Changes
Coinbase’s Chief Legal Officer Paul Grewal responded to the changes, noting the cancellation of Rule 3b-16 and other unfinished Gensler proposals. It appears that new SEC leadership is establishing a different regulatory approach.
The withdrawal of SEC proposed rules indicates possible changes in the approach to cryptocurrency regulation. The future of regulation now depends on new proposals and adequate reactions to shifts in the market.
