SEC Chair Paul Atkins affirms Ethereum staking and mining are not securities, urging the codification of rules rather than internal guidance.
Open-source developers and self-custody practices receive direct support, with assurances they won’t be treated as financial intermediaries by regulators.
A proposed innovation exemption may give DeFi builders a fast-track legal framework, allowing compliant launches while permanent rules are developed.
Ethereum regulatory clarity received a decisive push following new remarks by SEC Chair Paul Atkins, who delivered his crypto policy vision with strong support for decentralized finance and Ethereum’s core infrastructure.
SEC Chair Aligns Ethereum with American Ideals
In a series of posts by industry observer Eric Conner, Atkins opened with a powerful statement: “DeFi embodies the American spirit: economic liberty, property rights, and open innovation.” This marks the first time a sitting SEC Chair has publicly aligned Ethereum’s decentralized structure with foundational U.S. principles.
This language suggests a growing acceptance of Ethereum's role in supporting open financial systems. This framing suggests there is an ideological fit that has the potential to re shape the approach regulators take to blockchain technology.
Ethereum Staking and Mining Not Considered Securities
Atkins addressed key areas of concern around Ethereum, stating directly that mining, validating, and staking-as-a-service are not securities transactions. This statement moves past vague interpretations and calls for clear rulemaking rather than informal guidance.
He emphasized the need to formally codify these positions within the SEC’s framework. Such a move would protect both individual participants and service providers from uncertain legal risks. Ethereum regulatory clarity on staking is a core demand from the DeFi community.
Developer Protections and Self-Custody Defended
A notable part of Atkins’ remarks targeted the protection of developers and self-custody practices. He stated that writing open-source wallet software or publishing staking code is not brokerage activity. This clear distinction could lift the pressure many developers face when building foundational blockchain tools.
The statement also defends self-custody as a valid market structure. It removes fear that software builders could be treated as financial intermediaries under securities laws. Ethereum regulatory clarity in this area would support continued open-source development across the ecosystem.
Criticism of CeFi Failures and Support for DeFi Infrastructure
Atkins drew a line between centralized finance (CeFi) and DeFi, asserting that DeFi protocols remained functional during periods when centralized systems failed. According to Eric Conner’s report, Atkins stated that the SEC cannot apply outdated 1930s frameworks to 21st-century technologies.
He directed SEC staff to start drafting rules enabling firms to legally integrate with DeFi infrastructure. This includes pathways for on-chain issuance, settlement, and clearing. Ethereum regulatory clarity in these areas could make blockchain-based systems legally accessible for financial institutions.
Innovation Exemption and Fast-Track for Builders
One of the most anticipated developments is a proposed “innovation exemption.” This would offer DeFi projects temporary legal clarity while the SEC finalizes new rules. If enacted, it would allow builders to launch without the risk of abrupt enforcement.
Such a move could create a clear path for compliant decentralized applications. According to the information shared by Conner on X, this exemption could unlock growth and innovation without compromising legal stability. It would also encourage global projects to build within the U.S.
Final Observations on Ethereum Regulatory Clarity
If this vision is adopted as a policy, the United States could potentially be a leading jurisdiction for decentralized innovation. Regulatory clarity for Ethereum, particularly related to staking, self-custody, and infrastructure development, would create a stable growth paradigm.
Atkins' comments mark an important inflection point in the relationship between regulators and the Ethereum ecosystem, and when the rulemaking process proceeds, developers and institutions may finally gain the legal certainty to build openly and safely.
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