The US Securities and Exchange Commission (SEC) has officially dropped two controversial cryptocurrency-related rule proposals from former Chairman Gary Gensler's leadership, according to documents filed on Thursday.
One of the proposals sought to redefine the term "exchange" under Exchange Act Rule 3b-16, which could subject DeFi platforms to securities regulations.
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The other would have required investment advisors to hold cryptocurrencies with qualified custodians, raising concerns about access to banking.
Critics argued the SEC needed a new approach with adequate industry input. The withdrawal marks a shift in the agency's regulatory stance.