#CryptoRoundTableRemarks

The SEC's roundtable revealed tension between innovation and accountability in DeFi regulation.

SEC Chair Paul Atkins argued publishing code is protected speech, urging exemptions for non-custodial tool developers akin to open-source builders.

Conversely, Commissioner Hester Peirce warned centralized entities cannot evade rules by using "DeFi" labels; intermediaries must face oversight.

Atkins proposed an "innovation exemption" for compliant projects during rule development.

Long-term, experts advocate activity-based regulation (focusing on what protocols do) and mandatory code audits.

Regulation must distinguish toolmakers (protected) from service providers (regulated), prioritizing outcome-based rules over legacy structures as finance becomes code-driven.