Paul Atkins, the US SEC chair, is on a mission to exorcise the spirit of Gary Gensler from the history of the SEC. In a historic move, the SEC has withdrawn dozens of unfinished rules in an attempt to purge the body of its outdated remnants.
This move was nothing short of bold, but it is also called necessary, as people have pointed out. This was a legitimate attempt to redefine the financial protocols and make the landscape more conducive to changes and restructuring.
Legal Officer of Coinbase, Paul Grewal, shared his perspective on X, saying, “Down goes 3b16, qualified custodian, and all the other unfinished Gensler rule proposals.” Grewal further added, “The SEC just issued final notices rescinding them all.”
Rule 3b-16
The very centre of this purge was Rule 3b-16. The rule proposed an interpretation of what constitutes an exchange under the federal securities laws—the proposal aimed at dramatically expanding the SEC’s reach.
Many experts agreed that the finer details of the clause were quite vague. However, the SEC, under Gary Gensler, did pull through, and the proposal was considered for implementation in the landscape.
While the general population appears content with the idea of a more flexible SEC regulatory framework, there are dissenting voices. Maroline Crenshaw, one of the sole Democrat representatives and commissioners in the SEC, believes that the organization is moving too quickly.
As per Maroline, this is a game of regulatory Jenga that can backfire at any point in time.
