SEC Chair Paul Atkins Backs DeFi Principles in U.S. Roundtable
In a major policy shift, SEC Chairman Paul Atkins acknowledges DeFi’s alignment with economic freedom and innovation. Here's what happened and what it could mean for the industry.
📰 Overview
On June 10, 2025, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins spoke at the “DeFi and the American Spirit” roundtable in Washington, D.C., emphasizing the alignment between decentralized finance (DeFi) and key American values such as:
Innovation
Economic freedom
Private property rights
His remarks highlighted a shift in tone toward constructive dialogue around blockchain development, rather than rigid enforcement against decentralized technologies.
> “Blockchain’s decentralized nature reflects principles that support open markets and individual autonomy,” said Chairman Atkins.
🔍 Key Takeaways
✅ 1. Developers and Open-Source Code
Chairman Atkins clarified that software developers building decentralized tools should not automatically be considered financial intermediaries under existing laws, especially if they do not custody user assets or control systems.
This follows recent court rulings that draw a distinction between tool creators and regulated financial entities.
Why it matters:
This perspective encourages innovation while maintaining clear lines for accountability.
✅ 2. Self-Custody and User Autonomy
The chairman reaffirmed that self-custody and peer-to-peer blockchain systems are consistent with long-standing principles of individual property rights.
> “Digital ownership should not be treated differently simply because it’s on-chain,” he stated.
This could influence how future rules approach non-custodial wallets, validators, and staking services that operate without intermediaries.
✅ 3. Proposal for an “Innovation Pathway”
Atkins mentioned the SEC is exploring a conditional exemption framework (also referred to as an “innovation pathway”), which could allow eligible blockchain projects to operate in a compliant environment during early development phases.
This would offer regulatory clarity and flexibility for qualified participants without relaxing investor protection standards.
✅ 4. DeFi System Resilience
In his remarks, Atkins referenced independent data showing that decentralized finance platforms have demonstrated strong operational resilience, particularly during periods of broader market volatility.
Key examples:
Many on-chain lending protocols functioned as designed, with no systemic breakdowns
Decentralized exchanges continued to process trades without downtime
This observation supports ongoing discussions about the potential role of decentralized systems in broader financial infrastructure.
📊 Market-Neutral Insight: What’s Next?
While the SEC’s formal rules are still evolving, this public statement suggests an openness to:
✅ Engaging with builders and innovators
✅ Reviewing current policy language in the context of blockchain
✅ Supporting responsible development of new financial tools
This does not guarantee regulatory changes, but it does reflect a more collaborative approach between the SEC and the digital asset industry.
🧠 Beginner Tips: What to Take From This
If you're exploring the DeFi space, here's what to keep in mind:
🛠️ Developers building tools do not equal financial service providers
🔐 Self-custody wallets give you control — with responsibility
🧾 Always review regulatory updates from official SEC sources
🧑💼 Industry Perspectives
Some blockchain and Web3 builders shared their thoughts after the event:
@hester_peirce (SEC Commissioner): “A thoughtful approach to DeFi will protect users while allowing innovation to flourish.”
@cdixon (VC, Web3 advocate): “Encouraging to hear a discussion rooted in principles of autonomy and transparency.”
@chainalysis (Analytics): “Collaboration between regulators and builders is critical to developing long-term trust in blockchain systems.”