The U.S. Securities and Exchange Commission (SEC) has officially withdrawn several rule proposals aimed at regulating decentralized finance (DeFi) platforms during the previous leadership of Chair Gary Gensler. These proposals, which sought to tighten oversight on DeFi platforms and enhance regulations for crypto asset custody, faced significant opposition from industry stakeholders. 2023, the SEC proposed a rule change that would have broadly broadened the definition of an exchange under Rule 3b-16, subjecting DeFi platforms to the same regulatory frameworks as traditional stock exchanges. This proposal was met with strong resistance from experts in the crypto space who urged the SEC to engage more actively with the DeFi community for their input. Additionally, another proposed rule sought to mandate investment advisors utilize qualified custodians for digital asset custody, which raised concerns about potential limitations on bank involvement in the crypto market.