Chairman Paul Atkins said the SEC is working on developing policies to eliminate regulatory barriers to decentralized financing (DEFI) platforms.
Atkins and other SEC Republicans are using software developers to build Defi tools without any business blame. The final of the five crypto roundtables The agency has been held at the agency since President Donald Trump’s leadership misstep.
President Tell Defi experts a roundtable On Monday, he directed SEC staff to make changes to agency rules, “providing issuers and intermediaries with the accommodation they need to seek to manage the financial system on the chain.” Atkins said the potential exemption relief was “an innovative exemption” that would allow entities under SEC jurisdiction to quickly bring the chain’s products and services to the market.
“Many entrepreneurs are developing software applications designed to operate without any operator management,” Atkins said during the event. Although he notes that the technology that makes private peer-to-peer transactions sounds like science fiction, he says: “Blockchain technology enables brand-new software that can perform these functions without an intermediary.”
“We should not be automatically worried about the future,” Atkins said.
DEFI is part of the broader cryptocurrency industry, which attempts to rebuild financial tools and products with code to replace the role of traditional intermediaries such as banks and brokers.
The Republican members of the committee — currently outstripping Democrats at 3-1 — have been eager to adopt crypto-friendly policies. Although regulation of high-volume industries for cryptocurrency exchanges, brokers and custodial services is often briefly introduced in policy discussions. Despite years of distrust among Defi developers faced by U.S. government agencies, Republicans in power are seeking to relieve these pressures.
“The SEC may not violate First Amendment rights by regulating those who publish only regulations because others use the code to conduct traditional SEC supervision activities,” said Hester Peirce, a commissioner of the SEC crypto committee that led the SEC crypto committee to form this year. However, she also noted that “centralized entities cannot avoid regulation simply by introducing decentralized labels.”
Erik Voorhees, founder of the decentralized exchange, joked that when he received his first SEC subpoena 12 years ago, he didn’t think he would be invited to speak in the agency a few years later.
“I thank the committee for the change in tone and position,” he said. “I think this is absolutely positive for the United States.”
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