The US Securities and Exchange Commission (SEC) is rolling back 14 proposed rules, including key measures that once targeted the crypto industry.
Two of the rescinded rules would have directly impacted how digital assets are managed and traded in the US.
One rule sought to expand the definition of securities exchanges to cover DeFi platforms. The proposal would have brought a wide range of blockchain-based systems under the SEC’s jurisdiction by classifying them as exchanges.
Another of these rescinded rules targeted crypto custody practice.
The proposal required investment advisers to store all client assets, including digital assets, with qualified custodians.
Under this framework, many established crypto custodians would have failed to meet the SEC’s stricter criteria, leaving only banks and broker-dealers eligible to safeguard assets.
“The Custody Rule aimed to cover all client assets including crypto, broadened what counts as ‘custody,’ and raised concerns about whether certain state chartered entities should be qualified custodians.”
At the time, critics argued that these rules would have imposed undue restrictions on the sector, stifling innovation and driving activity offshore.
