American Commission for Securities and Exchange (SEC) Announced on June 12, 2025, the withdrawal of 14 proposals of rules introduced during the mandate of the old sec President Gary Gensler under the Biden administration. These proposals, introduced between October 2020 and November 2023, were canceled under the direction of the new president of the Sec Paul Atkinsreporting a change in the regulatory approach to the agency. The decision reflects a distance from what certain criticisms have described as an overly regulatory program, in particular in the fields affecting investment managers and the cryptocurrency industry.
This would have extended the Duty Include all assets, such as species, real assets and cryptocurrencies, requiring segregation to protect them in the event of bankruptcy. Critics argued that it was not practical for certain assets and could limit banking services for cryptographic companies. Proposed in May 2022, this rule aimed to combat “greenwashing” by demanding funds by claiming the ESG (Environment, Social, Governance) to disclose specific details on their strategies and classify them as integrated, concentrated or impact funds.
Predictive analysis of data and conflicts of interest: This rule has targeted the use of AI, automatic learning and data algorithms by investment advisers to treat potential interest conflicts.
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Management of cybersecurity risks: Proposed in February 2022, he would have forced brokers forced to maintain policies identifying the risks of cybersecurity and reporting the major incidents in the SEC within 48 hours.
Better execution regulations (Reg BE): Proposed in January 2023, it aimed to move the application of the best standards for the finra to the dry.
Externalization of the advisor: This would have imposed requirements for diligence, monitoring and holding files on advisers in externalizing certain functions.
Order competition rule: Intended to improve competition from titles of titles. Rule 3B-16 of the exchange: This proposal would have included decentralized financing platforms (DEFI) under the National Rules for the exchange of securities, a decision criticized by experts in blockchain politics.
The dry has provided no detailed reasoning for withdrawals, only indicating that he no longer intends to issue final rules for these proposals. Industry experts, such as Jay Gould From Baker Botts, noted that many of these areas are already covered by existing dry regulations, which suggests that the specific rules may have been redundant. For example, conflicts of interest is regulated even without the predictive proposal for data analysis, and the deceptive ESG complaints remain prohibited.
This decision was welcomed by figures such as rep. French hill (R-Ark.), Chairman of the Committee of the Chamber of Financial Services, which described it as not towards the restoration of balance, the protection of investors and the encouragement of innovation. In the crypto sector, the withdrawal of rules such as Rule 3B-16 of the rule of the custody rule and exchange is considered an evolution towards a more pro-Crypto regulatory position under the direction of Atkins, emphasizing clarity and consultation on the application.
The SEC decision to cancel 14 proposals for unfinished rules from the era peopleler, announced on June 12, 2025, has important implications for financial markets, investors and specific industries such as cryptocurrency. The withdrawal of rules such as the safeguarding of customer assets, the outsourcing of advisers and the predictive analysis of data reduces the charges of conformity. Companies will not be faced with new requirements in terms of asset childcare, surveillance of outsourcing or AI conflict management, which could reduce operational costs.
Overbooking the best proposals for managing cybersecurity risk The best execution proposals mean that brokers avoid stricter reporting and application standards, maintaining dependence on existing Finish regulations. The cancellation of proposals for the safeguard of customer assets and the 3B6 exchange rule is a major victory for the cryptography sector. The first would have imposed strict requirements on the custody of cryptographic assets, which potentially limits banking services for cryptographic companies. The latter would have classified the DEFI platforms as exchanges of securities, subjecting them to strong regulations.
This signals a more friendly dry crypto Paul AtkinsProbably promoting innovation and growth of the blockchain and digital assets market. He alignments with broader political changes, as we can see in the comments of the French Hill representative, emphasizing innovation. The withdrawal of the ESG disclosure rule means that funds will not need to categorize or provide detailed disclosure for ESG strategies. This could lead to continuous risks of “Washing of Green” because investors can lack clear information to assess ESG complaints, but this also reduces compliance costs for ESG funds for funds.
This decision reflects a pivot towards deregulation within the framework of the new leadership of the dry, by prioritizing the efficiency of the market and innovation on strict monitoring. This could encourage risk -taking and investment, but may raise concerns about the protection of investors, especially in areas such as cybersecurity and conflicts of interest. Without rules like ESG disclosure or cybersecurity risk managementInvestors can deal with higher risks of complaints from misleading funds or unsuccessful cyber-incidents. However, existing SEC and Finra regulations still ensure certain guarantees.
Reduced regulatory expenses could stimulate market activity, especially in crypto and alternative investments, but can also lead to volatility if the emerging surveillance differences. The decision is aligned with a broader deregulation program within the framework of the incoming administration, because the leadership of Atkins underlines the consultation on the application. This could open the way to new declines or a reassessment of dry priorities, which concerns the future creation of rules.
Critics may argue that the withdrawal of these proposals weakens investor protections and market stability. For example, the absence of the cybersecurity risk management rule could make markets vulnerable to unorganized cyber-menaces, while disassembly of the competition rule can limit commercial efficiency gains. The action of the SEC creates a more permissive environment for financial and cryptographic industries, potentially arousing innovation but raising concerns about surveillance gaps.
