The U.S. Securities and Exchange Commission (SEC) has officially withdrawn several proposed rules aimed at imposing stricter regulations on decentralized finance (DeFi) and cryptocurrency custody. These proposals, introduced under former Chairman Gary Gensler, included revisions to Rule 3b-16 of the Exchange Act, which sought to classify DeFi platforms as national securities exchanges. The withdrawal follows significant industry criticism of the proposals, which were initially issued in April 2023.