The SEC officially abolished the harsh proposals targeting DeFi and accomplice proposed during the Gary Gensler era.

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On June 13, The Block reported that the U.S. Securities and Exchange Commission officially withdrew several proposed rules on Thursday that would impose stricter regulations on Decentralized Finance and crypto asset custody. These proposals were made under the leadership of former Chairman Gary Gensler, who led the agency's "enforcement-oriented" approach. The withdrawn proposals included a proposed amendment to Rule 3b-16 of the Exchange Act published in April 2023. This proposal attempted to broaden the definition of exchange, specifically by including decentralized finance platforms under the regulation of national securities exchanges. The proposal faced criticism from various parties within the industry.

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