At a recent SEC crypto roundtable, prominent figures shared critical insights on the evolving intersection of decentralized finance (DeFi), regulation, and software development. SEC Chair Mark Atkins emphasized the need for legal nuance, stating, “Engineers shouldn’t be held liable for how others use their code,” advocating for clear boundaries between innovation and accountability. Commissioner Hester Peirce echoed a foundational concern, asserting, “Code is protected speech under the First Amendment,” highlighting the legal and constitutional dimensions of writing software in the crypto space.
Industry leader Erik Voorhees offered a bold comparison, describing smart contracts as a “step function improvement over human regulators,” suggesting that automated systems could outperform traditional oversight in terms of efficiency and fairness. This sentiment underscored a broader argument: that DeFi does not equate to lawlessness. Rather, participants noted that decentralization brings a new model of governance — one that is inherently transparent, rules-based, and user-centric.
The roundtable revealed growing consensus that regulatory frameworks must evolve alongside technological progress. As decentralized systems continue to redefine financial infrastructure, the debate shifts from whether to regulate to how to regulate without stifling innovation or infringing on civil liberties. The challenge now lies in crafting thoughtful policies that respect both code and constitutional rights.