Trump’s SEC Scraps 14 Rules

Donald Trump’s return to power is already sending shockwaves through the crypto industry — but this time, in a good way.

After promising pro-crypto reforms during his campaign, Trump has now followed through. His administration has officially rolled back at least 14 controversial crypto rules introduced under former SEC Chair Gary Gensler — signaling what many believe is the start of a new deregulatory era for crypto in the U.S.

US SEC Under Paul Atkins Withdraws 14 Gensler-Era Crypto Rules

In a major move aligning with President Trump’s pro-crypto and deregulatory agenda, the U.S. Securities and Exchange Commission (SEC), now led by crypto-friendly Chair Paul S. Atkins, has withdrawn multiple rules that were considered harmful to digital asset innovation.

Most of these policies, introduced between March 2022 and November 2023 during Gensler’s tenure, were seen as overreaching and restrictive.

Why These Withdrawals Matter

The previous Biden administration maintained a conservative and skeptical stance toward crypto. Gensler’s SEC took an aggressive regulatory approach that many in the industry labeled as hostile — targeting DeFi platforms, custodians, crypto derivatives, and more.

Trump vowed to dismantle these roadblocks. Now, he’s making good on that promise.

Top Gensler-Era Rules Now Scrapped

Here are the key rules that have been rolled back, bringing relief to the crypto industry:

Rule 3b-16 — DeFi in the Crosshairs

• Would have expanded the definition of “exchange” to include DeFi protocols and platforms facilitating communication between buyers and sellers.
• Its withdrawal is seen as a win for decentralized finance.

Qualified Custodian Rule

• Would have restricted crypto custody to traditional financial institutions like banks or broker-dealers.
• This would’ve effectively excluded most crypto-native exchanges and wallet providers.

Cybersecurity & Risk Management Rules

• Aimed at investment advisers and funds, including those handling crypto.
• Would have imposed stricter cybersecurity frameworks and regular incident disclosures.

Large Swap Position Reporting

• Required firms dealing in crypto-related swaps to report detailed position data.
• Many crypto funds saw this as onerous and unnecessary.

 ESG Reporting Mandate

• Would have forced public companies to disclose extensive Environmental, Social, and Governance (ESG) metrics.
• Critics argued it added non-crypto-related burdens that hinder innovation.

Coinbase and Industry Leaders Celebrate

Crypto leaders quickly voiced support. Coinbase Chief Legal Officer Paul Grewal cheered the move on X, posting:

“Down goes 3b-16, qualified custodian, and all the other unfinished Gensler rule proposals.”

The sentiment is shared across the crypto industry, as many view this as a turning point for regulatory clarity in the U.S.

• Also Read :
•   U.S. May Issue Crypto Bonds Backed by Bitcoin and XRP, Says Ex-CFTC Chair
•   ,

What’s Next for US Crypto Regulation?

Although these Gensler-era rules are now off the table, the SEC under Atkins may propose new, industry-friendly regulations in the future — but only after open consultation with stakeholders.

For now, the message is clear: Crypto has a seat at the table under Trump’s administration, and unnecessary barriers are being dismantled.

Bottom Line

With Gensler’s policies getting tossed and pro-crypto voices leading the charge, this moment could mark the true beginning of America’s crypto renaissance.

FAQs