The Roundtable discussion on Crypto, led by SEC Chairman Paul Atkins, focused on decentralized finance (DeFi) and its potential to revolutionize the financial system. Key points of the discussion include:
- *Importance of Self-Custody*: Chairman Atkins emphasized the importance of self-custody of crypto assets, citing it as a fundamental American value. He believes that market participants should have more flexibility to self-custody crypto assets, especially when intermediation imposes unnecessary transaction costs.
- *Regulatory Clarity*: Atkins highlighted the need for clear regulatory frameworks to enable the continued growth of DeFi protocols in the U.S. He expressed gratitude to the SEC's Division of Corporate Finance for clarifying that certain proof-of-work mining activities are not within the scope of federal securities laws.
- *Exemption for Innovation*: The SEC Chairman suggested exploring a conditional exemption framework or "exemption for innovation" to allow registrants and non-registrants to bring on-chain products and services to market. This measure aims to encourage innovation in the U.S. crypto space.
- *Benefits of Blockchain Technology*: Atkins expects significant benefits from blockchain technology, including efficiency, cost reduction, transparency, and risk mitigation. He believes that entrepreneurs leveraging this technology deserve clear regulatory rules.
- *Custody Rules*: The discussion also addressed custody rules, with Commissioner Caroline Crenshaw emphasizing the need for robust and tailored custody rules for crypto assets to protect investors. Commissioner Hester Peirce urged the SEC to update and clarify specific rules for crypto assets to support innovation while protecting investors.
