In a major shift, the U.S. SEC has rolled back several proposals introduced during Gary Gensler’s tenure. Among the withdrawn rules are the controversial expanded Custody Rule, the DeFi-targeted Rule 3b-16, and stricter ESG reporting mandates. These changes signal a softer regulatory stance as pressure mounts for clearer, more balanced crypto oversight. The move has been welcomed by many in the digital asset space, viewing it as a step toward more practical and innovation-friendly regulation.

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