SEC proposed 14 rules at the beginning of its term. These rules were designed to establish key measures and checks targeting the crypto industry. However, a recent move saw the SEC rolling back those key measures and practically wiping the slate clean.
The decision was announced on June 12 and illustrates a general shift in the regulatory body’s priorities. The agency is looking to distance itself from the aggressive undertakings of the older SEC. This is a political distancing that has some significance.
Change Of Principles
The proposal for withdrawal was primarily introduced in the March of 2022. On November 2023, Gary Gensler publicly called out the appeal and drew sharp opposition against crypto enthusiasts.
Out of all the rules that were rescinded, two of them were the most impactful in nature. One rule wanted to broaden the definition of securities and exchange that covers De-Fi platforms. Secondly, the rule wanted to bring in blockchain systenms under SEC jurisdiction, to classify them as exchanges.
However, the recent rolling back of crypto regulations is a stark change from what was before, Therefore, opening the gates for more advanced and well-structured regulation clarity.
