SEC Drops Gensler-Era Crypto & ESG Rules: A Watershed Moment for Digital Assets

The SEC just axed its controversial crypto and ESG proposals—clearing regulatory roadblocks for decentralized finance. Here''s why it matters.

Gensler''s Legacy Unravels

The move scraps years of contentious policymaking, freeing crypto projects from compliance burdens that critics called ''innovation-stifling overreach.''

Market Reacts in Real-Time

Trading volumes spiked 40% on major exchanges within hours—proof that Wall Street still bets on crypto when regulators step back.

The ESG Paradox

Ironically, killing ''woke compliance'' proposals may actually boost blockchain''s sustainability credentials by accelerating energy-efficient proof-of-stake adoption.

One hedge fund manager quipped: ''Finally, the SEC did something useful—by doing nothing.''

In a major shift, the U.S. SEC has rolled back several proposals introduced during Gary Gensler’s tenure. Among the withdrawn rules are the controversial expanded Custody Rule, the DeFi-targeted Rule 3b-16, and stricter ESG reporting mandates. These changes signal a softer regulatory stance as pressure mounts for clearer, more balanced crypto oversight. The move has been welcomed by many in the digital asset space, viewing it as a step toward more practical and innovation-friendly regulation.