The U.S. Securities and Exchange Commission (SEC) is looking to ease restrictions on decentralized finance (DeFi) platforms after years of tough oversight.
Speaking at a roundtable discussion titled “DeFi and the American Spirit” on June 9, SEC Chairman Paul Atkins said developers shouldn’t be blamed for how others use the tools they create.
“Many entrepreneurs are building software that runs without any central operator,” Atkins said, according to a transcript of his remarks.
He said the SEC is considering updates to its rules to better support those building blockchain-based financial systems. That includes exploring a new “innovation exemption” that could allow both registered and non-registered developers to bring DeFi products to market more easily.
Atkins acknowledged that blockchain technology may sound futuristic, but stressed that it enables a new kind of software that operates without middlemen. “We shouldn’t automatically fear the future,” he said.
The move reflects a broader shift by Republicans to ease the regulatory burden on DeFi, following what they describe as years of heavy-handed enforcement by federal agencies.
Atkins criticized the previous administration for stifling innovation. “The Biden administration discouraged self-custody and other blockchain tools by claiming that software developers might be acting as brokers,” he said. “Publishing software code should not make someone subject to securities laws.”
SEC Commissioner Hester Peirce, who now leads the agency’s new Crypto Task Force, echoed those concerns in her closing remarks. She warned the SEC not to overstep by targeting people just for writing code.
“The SEC must not violate free speech by regulating someone simply because others use their code in ways the agency oversees,” Peirce said.
Still, she added a warning: centralized companies can’t avoid regulation just by calling themselves “DeFi.”
The roundtable comes as U.S. crypto policy is undergoing a major shift. Since President Donald Trump returned to office, the SEC has paused or dropped several lawsuits against crypto firms, although it remains opposed to some unregistered staking services.
Featured image from: cryptorank.com