SEC Withdraws Key Gensler‑Era Crypto and ESG Rules

• 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The U.S. Securities and Exchange Commission has officially withdrawn its proposed expanded Custody Rule, which would have broadened the scope of what constitutes custody to include all client assets—especially crypto—and imposed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the same time, Rule 3b‑16, which sought to redefine “exchange” to capture DeFi platforms under securities law, has been withdrawn as well 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

In a parallel move, the SEC withdrew its defense of certain climate-risk disclosure rules and decided to step back from enhanced ESG reporting mandates to combat greenwashing—initially proposed under the Biden/Gensler administration.

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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