SEC Backs Down: Gensler’s Controversial Crypto Rules Officially Axed

The SEC is hitting the undo button on two of Gary Gensler’s most contentious crypto proposals.

In a Thursday filing, the agency confirmed it’s ditching plans to:

• Regulate DeFi like stock exchanges (via a 2023 proposal expanding Exchange Act Rule 3b-16)
• Force advisors to use SEC-approved crypto custodians (a rule that worried banks)

Critics, like Paradigm, had long argued the rules were half-baked—now, the SEC is back to the drawing board.

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