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Here are just a few of the 14 controversial proposals now officially withdrawn: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
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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
Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
This is not financial or investment advice. Always do your own research (DYOR).
