According to @Tier10K, the SEC has officially scrapped the expanded Custody Rule proposal and Rule 3b-16, both of which were initiated during the Gensler era. The Custody Rule was set to broaden the definition of 'custody' to include all client assets, notably cryptocurrencies, and raised concerns about the regulatory status of state-chartered crypto custodians. This withdrawal eliminates immediate regulatory uncertainty for crypto custody providers, potentially easing compliance pressures and encouraging institutional participation in the crypto market. Market participants should monitor for new SEC guidance, as this decision could impact the flow of institutional funds into digital assets (Source: @Tier10K, Twitter).