Wall Street Celebrates: SEC Scraps Gensler’s Most Controversial Rules
It finally happened—the SEC has hit rewind on more than 30 regulations from Gary Gensler’s time at the helm, and the financial world is loving it. The decision, which came down in June 2025, is already sending shockwaves through Wall Street—and not the kind that make traders nervous.
This isn’t just a policy shift. It’s a total reset.
After years of tension between regulators and the finance world, the new SEC leadership is making it clear: they’re done with what many saw as overreach.
Out with the Old: What’s Being Rolled Back?
Under new Chair Thomas Whitman, the SEC is scrapping 34 rules and interpretations. Here’s what’s getting tossed or toned down:
- Stricter ESG reporting (yes, Scope 3 emissions are now optional)
- Crackdowns on crypto exchanges and DeFi platforms
- Proposed limits on payment-for-order-flow (PFOF)
- Extra disclosures for hedge funds and private equity
For many in the industry, these rules were less about protection and more about red tape. Now? That tape’s been cut.
“Finally, we’re seeing a regulator that gets it,” said a fintech exec who asked not to be named. “You can’t regulate 2025’s tech with a 1995 mindset.”
Markets React Fast—and Loud
Within hours, the response from investors was crystal clear:
- S&P 500 jumped nearly 2%
- Financial sector stocks surged
- Crypto woke up: Bitcoin briefly crossed $101,000, and Ethereum topped $6,000
- Trading firms like Robinhood and Coinbase saw big green days
Let’s be honest—Wall Street had been waiting for this.
Key Changes, In Plain English
Here’s what’s actually different now:
🔸 ESG Mandates = Optional
No more mandatory Scope 3 emissions reporting. It’s still encouraged, but no longer required.
🔸 Crypto Gets Breathing Room
DeFi and blockchain startups now get a regulatory sandbox. The threat of lawsuits? Greatly reduced. KYC on non-custodial wallets? Scaled back.
🔸 PFOF Lives On
The proposed ban is gone. Instead, we’ll get new rules about trade routing transparency—but Robinhood’s business model is safe for now.
🔸 Hedge Funds, Relax
Quarterly “transparency” reports? No longer required. Fund managers are breathing easier.
Not Everyone’s Happy
Of course, critics are sounding the alarm.
Consumer advocacy groups and environmental watchdogs say the rollback weakens investor protection and lets corporations off the hook—especially when it comes to climate risk and crypto scams.
Even Gensler himself weighed in:
“Rolling back these rules may invite the very instability we tried to prevent.”
Strong words—but they’re unlikely to slow down the momentum.
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Global Impact Could Follow
This isn’t just about U.S. markets. The EU, UK, and Singapore have all been watching, and some analysts say this move could spark a domino effect. Countries that were pushing strict ESG and crypto regulations may now reconsider to stay competitive.
What Comes Next?
The SEC’s move comes with a 90-day comment period—meaning more reforms could be on the way. Expect updates in areas like:
- AI-powered financial advising
- Tokenized securities and NFTs
- Privacy and identity standards in fintech
Bottom line? The SEC’s message is loud and clear: Regulation isn’t going away—but it’s getting smarter.
Final Word: New Era, New Energy
This shift isn’t just about easing rules—it’s about redefining how regulators and innovators coexist. Whether you love or hate the changes, one thing’s certain: Wall Street’s gears are turning again, and fast.