The SEC is changing its thoughts

#CryptoRoundTableRemarks The last roundtable of the SEC on cryptocurrencies highlighted the importance of decentralized finance (DeFi) and its regulation. The SEC chairman, Paul S. Atkins, expressed his support for DeFi, emphasizing its alignment with fundamental American values such as economic freedom and private property.

*Key points of the discussion:*

- *DeFi Regulation:* Atkins called for a regulatory approach that fosters growth rather than restricts it, underlining the need for new rules to clarify individual participation in decentralized networks.
- *Innovation exemption:* An "innovation exemption" was proposed to allow developers to launch products on-chain more easily, removing unnecessary transaction costs and unlocking new financial tools.
- *Self-custody:* Atkins advocated for self-custody rights, asserting that owning crypto assets directly in a digital wallet is a modern extension of the American right to private property.
- *Regulatory challenges:* The SEC faces challenges in regulating DeFi due to a lack of clarity in applying securities laws to crypto assets and the need for comprehensive legislation.¹ ²

*Implications for the future:*

- The SEC may propose new rules for DeFi and the cryptocurrency industry in general.
- The innovation exemption could be a step towards more flexible and innovation-friendly regulation in the industry.
- The defense of self-custody could mark a shift in how the SEC approaches cryptocurrency regulation.