US SEC officially withdraws DeFi and cryptocurrency regulation proposals from the Gensler era

## Continued SEC Regulatory Easing

On June 12, the U.S. Securities and Exchange Commission (SEC) announced the formal withdrawal of its proposal to strengthen regulations regarding decentralized finance (DeFi) and cryptocurrency custody. These proposals were developed under former Chairman Gensler from March 2022 to November 2023 and aimed to impose strict oversight on the industry as part of an “enforcement-based regulation” approach.

The retracted regulatory proposal consists of three main items: a plan to mandate the registration of DeFi platforms as securities exchanges, a proposal for the introduction of a competitive bidding system for retail investor orders, and a proposal to strengthen the disclosure requirements for trade execution data. The SEC has stated that it will issue a new proposal rule if it considers new regulatory measures in these areas.

The newly appointed Chairman Atkins expressed a significant shift in regulatory policy at the DeFi roundtable meeting on the 9th. He stated, “Economic freedom, private property rights, and innovation are at the core of the United States and DeFi,” and revealed the consideration of an “innovation exemption” system that would allow companies to easily introduce on-chain products.

Chairman Atkins criticized the previous administration’s stance on DeFi regulation, stating that miners, validators, and staking operators are not subject to federal securities laws. He emphasized the need to establish this policy as formal rules and indicated a plan to consider regulatory amendments aimed at improving the operating environment for on-chain financial system management operators.