SEC Discusses Regulatory Issues of DeFi at Cryptocurrency Roundtable
According to CoinDesk, the leadership of the U.S. Securities and Exchange Commission (SEC) discussed regulatory issues of decentralized finance (DeFi) with experts during the fifth cryptocurrency roundtable held on Monday. SEC ### Paul Atkins stated that the agency is considering guidance or formal exemption rules to promote compliant innovation in the DeFi ecosystem.
Atkins and other Republican SEC commissioners advocated in the final roundtable meeting that software developers creating DeFi tools should not be held responsible for how these tools are used by others.
Atkins mentioned that he has instructed SEC staff to explore rule modifications to “provide necessary support for issuers and intermediaries seeking to manage on-chain financial systems.” He referred to this potential exemption as an “Innovation exemption,” allowing entities regulated by the SEC to swiftly bring on-chain products and services to the market.
During the meeting, Atkins noted that “many entrepreneurs are developing software applications that operate without the need for any operator management” and highlighted the technology enabling private peer-to-peer transactions as something that “sounds like science fiction.” However, blockchain technology has realized a new type of software that can execute these functions without intermediaries, stating that “we should not instinctively fear the future.”
Currently, the Republican commissioners at the SEC (who hold the majority) aim to advance more crypto-friendly policies. SEC Commissioner Hester Peirce, who leads the newly established cryptocurrency project team, stated that “the SEC absolutely cannot regulate individuals solely for publishing code used by others to engage in activities traditionally regulated by the SEC, infringing on the rights granted by the First Amendment.” However, she also emphasized that “centralized entities cannot evade regulation simply by labeling themselves as ‘decentralized’.”
