The U.S. Securities and Exchange Commission (SEC) has withdrawn several proposals under Chair Gary Gensler’s leadership. These include the expanded Custody Rule, Rule 3b-16, and a proposal to tighten ESG reporting requirements for listed companies. The expanded Custody Rule aimed to incorporate all client assets, including cryptocurrencies, in its definition of ‘custody’, raising concerns about whether certain state-chartered financial institutions should be considered qualified custodians. Meanwhile, the SEC’s proposed rule 3b-16 sought to regulate decentralized finance (DeFi) exchanges and platforms as national securities exchanges for regulatory purposes. Finally, the SEC has abandoned its proposal requiring listed companies to adhere to enhanced ESG reporting requirements.