SEC Withdraws Key Gensler‑Era Crypto and ESG Rules
The SEC has officially withdrawn the expanded Custody Rule, Rule 3b‑16 for DeFi exchanges, and enhanced ESG reporting proposals.

- SEC rescinds expanded Custody Rule and DeFi Rule 3b‑16 from Gensler era
- Also withdraws enhanced ESG/climate-related disclosure requirements
- Move signals regulatory easing and fresh agenda under new leadership
Reversal of Gensler‑Era Crypto Rules
The U.S. Securities and Exchange Commission has officially withdrawn its proposed expanded Custody Rule, which would have broadened the scope of what constitutes custody to include all client assets—especially crypto—and imposed stricter requirements on custodians .
At the same time, Rule 3b‑16, which sought to redefine “exchange” to capture DeFi platforms under securities law, has been withdrawn as well
ESG and Climate Disclosure Rollback
What This Means Forward
This wave of rollbacks represents a clear shift in regulatory philosophy. Crypto firms and DeFi platforms can expect reduced compliance burdens and regulatory uncertainty. Meanwhile, ESG-focused corporations may see altered priorities and fewer disclosure demands. The SEC appears to be pivoting under new leadership toward a lighter-touch, rulemaking-first strategy .
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