Donald Trump's return to the political arena has already triggered significant changes in the crypto industry. His promises of reforms in the cryptocurrency space are beginning to materialize.
Withdrawal of Gensler-Era Rules by the US SEC
Under the leadership of new Chair Paul S. Atkins, the U.S. Securities and Exchange Commission (SEC) has officially withdrawn 14 controversial rules introduced by former SEC Chair Gary Gensler. This decision aligns with Trump’s pro-crypto and deregulatory agenda.
Key Rules Scrapped and Their Significance
The cancellation of several key rules introduced between March 2022 and November 2023 brings optimism to the crypto industry. The main scrapped rules include:
1. **Rule 3b-16** — the definition of “exchange” no longer encompasses DeFi protocols. 2. **Qualified Custodian Rule** — limited crypto custody to traditional financial institutions. 3. **Cybersecurity & Risk Management Rules** — imposed strict requirements on investment advisers. 4. **Large Swap Position Reporting** — mandatory reporting for crypto funds deemed excessive. 5. **ESG Reporting Mandate** — required public companies to disclose extensive ESG metrics, perceived as unnecessary burden.
Future of Crypto Regulation in the US
With Gensler’s rules now off the table, the SEC under Atkins may propose new, industry-friendly regulations in the future, developed in consultation with market participants. This reflects a new approach to crypto regulation.
With the rollback of Gensler's policies and pro-crypto voices emerging at the regulatory level, this may mark the beginning of a new era for the crypto industry in the US.
