The US SEC officially abolished the DeFi exchange and custody rule proposals from the Gensler era.

Gate News bot news, according to the official notice released on Thursday, the SEC ( has officially withdrawn several proposed rules aimed at restricting Crypto Assets related activities that were put forward during the leadership of former chairman Gary Gensler.

This includes proposed amendments to Rule 3b-16 of the Securities Exchange Act released in April 2023. The proposal attempts to expand the definition of exchanges, particularly to incorporate decentralized finance platforms under the regulation of national securities exchanges. The proposal has drawn criticism from various parties in the industry.

Paradigm's policy expert commented at the time: "If the SEC wants to establish an effective regulatory approach to DeFi, the only way to do so is to withdraw its proposed amendments and start from scratch: after engaging in genuine contact with the DeFi industry, issue a proposed rulemaking notice that clearly describes its proposed regulatory approach."

Another withdrawn proposal aimed to expand the current custody rules, requiring investment advisors to custody Crypto Assets at qualified custodians and to increase protections for these assets.

Due to the fact that this rule will impose stricter custody rules on advisors holding Crypto Assets, it has raised concerns about whether it will further limit the number of banks willing to do business with the industry.

In March 2025, Mark Uyeda, then acting chairman of the SEC, instructed agency staff to revisit the proposed rules after facing strong opposition.

Other withdrawal measures include several proposals put forward during Gensler's term, such as requiring investment companies to strengthen cybersecurity risk management and ESG requirements.

SEC Chairman Paul Atkins recently expressed support for DeFi, stating that self-custody is a "fundamental American value" that should also be upheld in the digital space.

Source: The Block