SEC Officially Repeals Gary Gensler-Era Proposal for DeFi and Custody

according to The Block, the U.S. Securities and Exchange Commission officially withdrew several proposed rules on Thursday that would have imposed stricter regulation on DeFi and cryptocurrency custody.

These proposals were put forward under the leadership of former Chairman Gary Gensler, who led the agency's "enforcement regulatory" approach. The scrapped proposals include proposed revisions to Rule 3b-16 of the Exchange Act, which was set to be released in April 2023. The proposal sought to expand the definition of exchanges, particularly by including decentralized financial platforms under the regulation of national securities exchanges. The proposal has drawn criticism from various industry stakeholders.