The U.S. Securities and Exchange Commission (SEC) has withdrawn three highly controversial proposals that were intended to tighten regulations on the decentralized finance (DeFi) industry, indicating a shift towards a more supportive stance towards crypto innovation. On June 13th, these proposals – the Expanded Custody Rule, Rule 3b-16 revision, and the ESG Disclosure Enhancement Proposal – were formally dropped. This is seen as a positive development for DeFi developers, investors, and those within the cryptocurrency ecosystem. The SEC’s actions have been interpreted as a sign that U.S. regulators are beginning to realize the limitations of their previously heavy-handed approach to crypto regulation.