SEC Chairman Paul S. Atkins delivered a vigorous defense of decentralized finance at the Crypto Task Force Roundtable held in Washington, D.C. He stated that DeFi aligns with key American ideals such as economic freedom, innovation, and personal ownership.
According to remarks posted by @SECGov, Atkins supported changes in the Commission’s regulatory approach to address the characteristics of decentralized systems. Since they work on their own and without a central controller, these systems cannot fit within the existing rules that rely on third parties and issuers.
Rather than continue with staff-issued guidance, Atkins supported making regulations through official lawmaking. Jason warned that not understanding the securities laws could stop people from investing in the economy.
Atkin’s proposal specifically excluded validators, miners, and people who help operate decentralized networks from being considered securities actors. He remarked that recognizing that network involvement isn’t on its own enough to call it securities trading is a key point.
New Innovation Pathway and Developer Protections Proposed
Atkins proposed an “innovation exemption” so that DeFi developers who followed the laws would be exempt from specific regulations. He noted that this idea would make it easier for new businesses to participate and encourage the proper development of financial products on the blockchain.
He drew attention to the need for the law to understand that innovation helps in initiatives that do not break any rules. Because of this, there would be no interference with the critical work of builders in updating homes.
Atkins further pointed out how vital it is to protect your wallets. He compared privately owned assets in digital wallets to the American principle of private property. Autonomy should not be made illegal by breaking the rules as long as those rules protect the software.
He noticed that DeFi systems perform better and become more stable than centralized platforms when the market is turbulent. Because of this, it should be securing a law that is considered carefully and not ruled by broad regulations.
Chairman Atkins concluded with a call to modernize the SEC’s approach, warning that outdated models no longer suit a digital-first economy. He said a new policy direction would ensure the U.S. remains competitive in the global financial landscape.
Conclusion
The SEC Chairman believes that decentralized finance should be officially included in the country’s legal rules. According to his vision, rules will assist instead of hurting the crypto sector.
