TechFlow news, June 13 — According to The Block, the U.S. Securities and Exchange Commission (SEC) formally withdrew several cryptocurrency-related regulatory proposals on Thursday that were introduced during former Chair Gary Gensler's tenure.
The withdrawn proposal includes an April 2023 amendment to Rule 3b-16 of the Exchange Act, which sought to expand the definition of an exchange, particularly aiming to bring decentralized finance (DeFi) platforms under the regulatory scope of national securities exchanges.
Another withdrawn proposal aimed to expand existing custody rules by requiring investment advisers to hold crypto assets with qualified custodians and introducing additional protective measures for these assets—a move that previously raised industry concerns about potentially further limiting the number of banks willing to work with the crypto sector.
SEC Chair Paul Atkins recently expressed support for DeFi, calling self-custody a "core American value" that should be upheld in the digital realm.
