SEC "cleans up" Gensler's legacy, crypto community breathes a sigh of relief

The U.S. Securities and Exchange Commission (#SEC ) has officially withdrawn more than 12 cryptocurrency regulatory proposals that were made during Chairman Gary Gensler's tenure – a move likened to a major "purge" in the industry.

The focus is on proposal Rule 3b-16, which had been highly controversial as it redefined DeFi protocols, open-source developer groups, wallets, and even chat groups like Telegram, Discord… as potential securities exchanges if they connect buyers and sellers of tokens. Experts warned that this proposal was unclear and could turn anyone involved in developing or operating crypto tools into a sanctioned entity.

Additionally, the regulation on "qualified custodians" – which required assets to be held at traditional financial institutions approved by the SEC – has also been removed. If implemented, this would nearly ban investment funds from using custody services from crypto companies, blocking access to digital assets for institutional investors such as pension funds and charitable organizations.

Even proposals to reform the securities market like Best Execution and Order Competition have been canceled over concerns that they would reduce liquidity and increase transaction costs for retail investors.

This is a clear signal that the SEC under the new Chairman Paul Atkins is "cooling down" with crypto, opening up opportunities for a more transparent development of the digital asset industry in the U.S.

Crypto always carries risks. Investors need to conduct thorough research before participating in the market. #anhbacong