Trump’s SEC: A Crypto Renaissance or Just a Fad?

Ah, the return of Donald Trump! Like a boisterous guest at a dinner party, he has arrived, and the crypto industry is holding its breath, half-excited, half-terrified. This time, however, the news is not all doom and gloom.

In a twist that could only be described as a plot twist worthy of a mediocre novel, Trump has decided to keep his campaign promise of pro-crypto reforms. His administration has taken a bold step, rolling back a staggering 14 rules that were once the bane of crypto enthusiasts under the watchful eye of Gary Gensler. It seems we are on the brink of a new era, one where the shackles of regulation may finally be loosened. Or perhaps just replaced with a different set of handcuffs? 🤔

The SEC Under Paul Atkins: A New Dawn?

In a move that aligns perfectly with Trump’s pro-crypto agenda, the U.S. Securities and Exchange Commission (SEC), now helmed by the ever-so-charming Paul S. Atkins, has decided to withdraw several rules that were deemed detrimental to the innovation of digital assets. It’s as if they’ve decided to throw caution to the wind and let the crypto party commence! 🎉

Most of these policies, birthed between March 2022 and November 2023 during Gensler’s reign, were viewed as overreaching and restrictive. Who knew that a little bit of freedom could feel so exhilarating?

Why These Withdrawals Matter (Or Not)

The previous administration, under Biden, maintained a rather conservative and skeptical stance toward crypto. Gensler’s SEC was like a strict schoolmaster, wielding regulations like a ruler, and many in the industry felt like misbehaving children. But fear not! Trump has vowed to dismantle these roadblocks, and it appears he’s making good on that promise. Or at least, he’s trying to make it look like he is. 😏

Top Gensler-Era Rules Now Scrapped

Here are the key rules that have been rolled back, much to the relief of 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. A real party pooper, if you ask me!
• Its withdrawal is seen as a win for decentralized finance. Cheers to that! 🥂

Qualified Custodian Rule

• Would have restricted crypto custody to traditional financial institutions like banks or broker-dealers. Because who needs innovation when you have tradition, right?
• This would’ve effectively excluded most crypto-native exchanges and wallet providers. A real head-scratcher! 🤷‍♂️

Cybersecurity & Risk Management Rules

• Aimed at investment advisers and funds, including those handling crypto. Because nothing says “trust me” like a mountain of regulations!
• Would have imposed stricter cybersecurity frameworks and regular incident disclosures. Just what we need, more paperwork! 📄

Large Swap Position Reporting

• Required firms dealing in crypto-related swaps to report detailed position data. Because who doesn’t love a good report?
• Many crypto funds saw this as onerous and unnecessary. A classic case of “why bother?”

ESG Reporting Mandate

• Would have forced public companies to disclose extensive Environmental, Social, and Governance (ESG) metrics. Because nothing says “let’s innovate” like a laundry list of obligations!
• Critics argued it added non-crypto-related burdens that hinder innovation. A real buzzkill! 😩

Coinbase and Industry Leaders Celebrate

Crypto leaders quickly voiced their 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. Or at least a turning point for a good laugh!

• Also Read :
• U.S. May Issue Crypto Bonds Backed by Bitcoin and XRP, Says Ex-CFTC Chair
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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. Because who doesn’t love a good consultation? 😅

For now, the message is clear: Crypto has a seat at the table under Trump’s administration, and unnecessary barriers are being dismantled. Or at least, they’re being moved to a different room.

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. Or it could just be another chapter in the ongoing saga of “What Will They Think of Next?”

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2025-06-13 12:57