#CryptoRoundTableRemarks

At the latest SEC crypto roundtable, major voices weighed in on DeFi, code, and regulation. On one hand, DeFi developers often build open-source code intended for public use, similar to software projects that underpin the internet. Treating them like financial intermediaries could stifle innovation and push talent away. Yet, DeFi protocols often facilitate real-world financial activity—trading, lending, and derivatives—so some level of oversight is warranted.

A balanced approach is crucial: protect builders from undue liability for publishing code (a free speech issue), while ensuring that protocols with significant financial impact have clear guardrails—like disclosures, risk management, and consumer protection. Think of it like regulating bridges: we don’t hold the engineers responsible for every driver’s mistake, but we do set safety standards.

As finance becomes more code-driven, regulators must collaborate with developers to craft frameworks that preserve innovation without turning the ecosystem into a legal minefield.

Regarding Ethereum ($ETH ), the protocol’s flexibility makes it a magnet for DeFi innovation—but also regulatory scrutiny. A nuanced, collaborative approach will help ensure that DeFi grows responsibly while protecting the builders who make it all possible.