In the final session of five crypto discussions held by the U.S. SEC this past Monday, Chairman Paul Atkins highlighted potential policies aimed at supporting decentralized finance (DeFi) platforms. The Securities and Exchange Commission (SEC) is considering new guidelines or exemptions to facilitate the development of DeFi technologies.
Atkins stated, “Software developers creating DeFi tools should not be held accountable for unintended uses of their creations.”
During this final roundtable, Atkins encouraged agency staff to explore rule modifications to enable the efficient introduction of on-chain financial systems, branding this proposed exemption as an “innovation exemption.”
He emphasized, “Many innovators are creating software that operates without any operator intervention. While it may seem futuristic, blockchain technology provides a new class of software capabilities that eliminate the need for intermediaries.”
The chairman urged the SEC to be cautious not to hinder the advancement of technology, asserting that the future shouldn’t be viewed with fear.
DeFi represents a segment of the cryptocurrency landscape that seeks to recreate traditional financial services using code, thereby eliminating traditional intermediaries like banks and brokerages. Currently, Republican members within the commission, holding a 3-1 majority over Democrats, are advocating for policies that are more favorable to crypto industries.
Despite historical skepticism towards DeFi, the current leadership expresses a desire to alleviate regulatory pressures on developers in this sector.
Commissioner Hester Peirce, who heads the SEC Crypto Task Force, noted, “The SEC must respect First Amendment rights by not regulating individuals who publish code based merely on its use by others in regulated activities.”
Erik Voorhees, founder of the decentralized exchange ShapeShift, remarked on the progressive shift within the SEC, stating, “I appreciate the commission’s changing tone. This is a positive development for the country.”
