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Enforcement Withdrawal

Definition

Enforcement withdrawal refers to the act of a regulatory authority rescinding or suspending a previously issued enforcement action, such as a cease-and-desist order or a penalty. This action typically occurs when the regulated entity demonstrates compliance, successfully appeals the decision, or new information alters the regulatory stance. In the context of digital assets, it signifies a change in the regulatory landscape or a specific firm’s operational adjustments to meet legal requirements. It can signal a shift in regulatory priorities or a successful resolution of compliance issues.