The U.S. Securities and Exchange Commission (SEC) has withdrawn its proposals concerning the regulation of decentralized finance (DeFi) and the expansion of custody rules. This decision marks a shift in regulatory policy and may lower compliance costs.
Reasons for SEC's Withdrawal
The withdrawal of SEC's proposals concerns the regulation of decentralized finance, linked to growing criticism from the industry. These proposals, introduced by former SEC Chair Gary Gensler, raised concerns about their impact on cryptocurrency asset custody and investment practices.
Industry Reactions and Future Regulation
Commissioners Hester Peirce and Mark Uyeda expressed opposition, emphasizing the need for balanced regulation and more open dialogue with entrepreneurs. Uyeda stated: > "Past SEC approaches to DeFi discouraged entrepreneurs and lacked regulatory transparency… High-quality regulation takes time… The SEC should not refrain from engaging in oversight of novel areas simply because it involves thinking outside the existing framework."
Impact on Crypto Asset Liquidity
The withdrawal of these proposals may open avenues for new custodial solutions for digital assets, encouraging increased liquidity in the market. It is anticipated that this will have a positive effect on the participation of various market players.
In summary, SEC's decision to withdraw proposals regarding DeFi and custody may lead to reduced compliance costs and create a more flexible environment for the cryptocurrency market.
