SEC Reverses Crypto and ESG Regulations: A Shift in Regulatory Landscape

The U.S. Securities and Exchange Commission (SEC) has withdrawn key regulations from the era of former Chair Gary Gensler, signaling a change in regulatory focus under new leadership. The SEC reversed expanded custody rules that would have covered all client assets and imposed stricter requirements on custodians. They also withdrew enhanced ESG/climate-related disclosure rules intended to combat greenwashing, initially proposed during the Biden/Gensler administration. These reversals represent a significant shift in regulatory approach for both the crypto and ESG sectors.