SEC Chair Paul Atkins Defends DeFi: Atkins Calls for Change
At the SEC’s most recent Crypto Task Force Roundtable on decentralized finance on June 9, SEC Chair Paul Atkins stated that the DeFi movement is rooted in the American ideals of economic liberty, private property rights, and innovation. Current securities regulations were created for conventional intermediaries and issuers, not self-executing software systems, according to Atkins, who opposed the application of century-old regulatory frameworks to DeFi and blockchain innovation.
The prior administration discouraged Americans from participating in blockchains by asserting through lawsuits, speeches, regulation, and threatened regulatory action that participants and staking-as-a-service providers may be engaged in securities transactions.
Atkins
Crypto Custody Freedom and Innovation: SEC Chair Lays Out New Vision
Additionally, Atkins explained that voluntary involvement in a proof-of-work or proof-of-stake network as a validator, miner, or staking-as-a-service provider is not covered by federal securities laws. He also supported giving market players the freedom to keep cryptocurrency assets in their own custody. According to him, publishing wallet software or staking codes is not a brokerage activity.
SEC Considers Rule Changes to Support On-Chain Finance and Crypto Innovation
In order to accommodate on-chain financial systems, the SEC chair instructed staff to contemplate rule modifications and investigate guidance for registrants conducting business with blockchain systems. Additionally, he suggested an innovation exemption framework to allow compliant on-chain goods and services to enter the market more quickly.
An innovation exemption could help fulfill President Trump’s vision to make America the “crypto capital of the planet” by encouraging developers, entrepreneurs, and other firms that are willing to comply with certain conditions to innovate with on-chain technologies in the United States.
Atkins
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