DeFi and Custody Rules Scrapped by SEC, Signaling End of Gensler-Era Crackdown

- SEC Officially Withdraws Cryptocurrency Regulations from Gensler Era - Bitcoin Rises 3.5%, DeFi Tokens Also in Uptrend [Unblock Media] The U.S. Securities and Exchange Commission (SEC) has officially rescinded the proposed rules to strengthen cryptocurrency custody and DeFi (decentralized finance) regulations that were pushed during Gary Gensler's tenure as chair. Eleanor Terrett, the host of Crypto in America, reported on the 13th (local time) that the SEC announced the withdrawal of these regulations through an official statement. The rescinded regulations required that all client assets, including digital assets, be held in SEC-registered custody institutions. They also included provisions to subject DeFi exchanges and platforms to the same level of regulation as traditional centralized securities exchanges and to strengthen ESG (environmental, social, and governance) reporting requirements for public companies. These regulations were proposed under Gensler's administration in 2023 and 2024 but were criticized by the industry and legal community as overly burdensome. This decision indicates a shift in the SEC's regulatory stance. It suggests a potential move from a 'restraint' approach towards the DeFi ecosystem to either a 'mainstream acceptance' or 'self-regulation' approach. According to internal SEC sources, there is a growing consensus on the need for regulatory frameworks that do not hinder innovation in the digital asset market. Meanwhile, the cryptocurrency market reacted positively to the withdrawal of the regulations. Bitcoin (BTC) rose by 3.5% at one point during the day, and DeFi-related tokens such as Uniswap (UNI), Aave (AAVE), and Maker (MKR) also saw significant gains. This action may represent a crucial turning point for the regulatory direction of cryptocurrency custody and DeFi, with significant attention now focused on the new regulatory framework that the SEC may propose in the future.