Imagine a strict market enforcer taking off their glasses, leaning back, and saying:
“You know what? Do what you think is best.”
For the crypto world, this isn’t just a shift — it’s a liberation bell ringing.
Backstory: Gensler’s Tight Reign
Since 2021, under Chairman Gary Gensler, the U.S. Securities and Exchange Commission (SEC) launched a regulatory crackdown that had crypto firms sweating.
Here are just a few of the 14 controversial proposals now officially withdrawn:
- A ban on payment-for-order-flow, which underpins market maker discounts.
- A proposal to treat most crypto platforms as national securities exchanges.
- A new definition of “broker” broad enough to include DeFi coders.
- Mandatory disclosure of algorithms and trading models — a peek inside the secret sauce.
- An all-encompassing licensing regime for all digital assets, except for SEC-blessed securities.
Critics warned that these measures would choke innovation and push the entire industry offshore.
“If all this passes,” one analyst quipped, “only Coinbase will survive — and even that in exile.”
So What Changed? Why the Reversal?
On June 15, 2025, the SEC quietly announced the withdrawal of all 14 proposals.
The reasons?
- Political pressure: Congress demanded pro-innovation policy, especially in an election year.
- Legal losses: Courts sided with Ripple and Grayscale, limiting SEC overreach.
- Crypto fights back: Heavyweights like Coinbase and a16z poured resources into lobbying, litigation, and PR.
The SEC realized it wasn’t above the battle — it was in it.
What This Means for the Market
- Exchanges now face fewer barriers. Startups can enter without regulatory dread.
- DeFi developers are no longer at risk of being labeled “brokers” for writing code.
- Retail investors may enjoy more platforms, better prices, and real competition.
- The SEC faces rare reputational damage: for once, it had to back down.
A New Era of Crypto Liberalization? Not So Fast
 (1) (1).png)
The war isn’t over — just the battle. Expect:
- A push for voluntary self-regulation frameworks, similar to FINRA.
- New crypto laws via Congress, not agency memos.
- More action from other agencies — CFTC, DOJ, even the FBI.
Epilogue
This isn’t the end of regulation — it’s a ceasefire.
But for the first time in years, crypto doesn’t feel like a target, but a participant in the future.
Some are calling it “The SEC’s Crypto Day of Atonement.” It may just be the start of something bigger.
Also read:
Crypto Heists of June 2025: $15 Million Stolen in Two Major Hacks
Arthur Hayes Labels Crypto Company IPOs the New ICO Boom of 2017
