The US SEC officially abolishes the proposal to expand the definition of "custody rules" and DeFi related regulatory rules 3b-16 According to encryption journalist Eleanor Terrett, the US Securities and Exchange Commission (SEC) has just officially abolished the proposed expanded custody rules and Rule 3b-16, as well as other rules from Gary Gensler's tenure. The custody rules aim to cover all client assets, including encrypted assets, expanding the definition of "custody" and raising concerns about whether certain state licensed entities should be recognized as qualified custodians. Rule 3b-16 proposes to regulate decentralized finance (DeFi) exchanges/platforms as national securities exchanges. In addition, the SEC has abandoned its proposal to require listed companies to comply with enhanced environmental, social, and governance (ESG) disclosure requirements.