The U.S. Securities and Exchange Commission (SEC) has officially withdrawn several crypto-related rule proposals introduced during President Joe Biden’s administration, marking a significant shift in the agency’s regulatory direction. The repeals come as part of a broader policy cleanup by the SEC under increasing pressure from industry stakeholders and lawmakers.
Among the scrapped proposals were rules that sought to impose tighter custody requirements on crypto platforms and reclassify certain digital assets under securities laws. Critics argued these measures stifled innovation and lacked clarity, prompting the agency to revisit its approach to crypto regulation.
The move follows months of legal battles and public criticism over the SEC’s perceived overreach in the digital asset space. While the agency has not ruled out future reforms, the repeals suggest a more measured stance may be taking shape as political and industry dynamics evolve.
This regulatory rollback signals a potential easing of friction between the SEC and the crypto sector, offering a temporary reprieve for companies operating in the space. However, industry leaders remain cautious, awaiting clear guidelines that balance investor protection with innovation.
