In a decisive shift away from the expansive regulatory agenda of former Chair Gary Gensler, the U.S. Securities and Exchange Commission (SEC) announced on June 12 its withdrawal of 14 proposed rulemakings. The rescinded proposals—originally issued between March 2022 and November 2023—touched on a wide range of complex issues, including predictive data analytics, custody of client assets, cybersecurity, ESG disclosures, trading practices and broker-dealer regulations.

Industry experts and legal practitioners view the move as a clear signal of the SEC’s new direction under Chair Paul S. Atkins, with an emphasis on more pragmatic, less prescriptive regulation.

Jonathan Groth, partner at DGIM Law and a seasoned crypto litigation attorney, framed the withdrawals as consistent with the current administration’s campaign promise to reduce regulatory burdens. He observed that the prior administration’s rules would have imposed stricter requirements on fund advisers regarding recordkeeping, asset safeguarding, and ESG disclosures.

Groth emphasized the significance of the SEC’s decision for the crypto industry, noting that one withdrawn proposal sought to broaden the definition of “exchange” to include decentralized finance protocols, potentially tightening custody rules for crypto advisers. He further predicted continued deregulation of crypto markets, citing recent case dismissals against major exchanges and the Commission’s anticipated development of more industry-friendly frameworks.