#CryptoRoundTableRemarks The latest SEC crypto roundtable highlighted the growing tension between innovation and accountability in decentralized finance (DeFi). Here’s my take on the key issues:

1. DeFi Devs: Builders or Intermediaries?

DeFi developers straddle a complex line. On one hand, they write open-source code — a protected form of speech and innovation. On the other, that code often powers platforms facilitating billions in financial transactions. The moment a dev exercises control (e.g., through admin keys or protocol governance), the case for treating them as financial intermediaries strengthens. But blanket liability for all devs would chill innovation and unfairly target contributors to decentralized, uncontrolled protocols.

2. Code ≠ Neutral

While code itself may be neutral, its deployment and use are not. Regulation must recognize this distinction. If you're publishing a general-purpose smart contract, that’s not the same as running a centralized exchange with a front-end and marketing team. The real issue is who controls, profits from, and promotes the financial functionality — that’s where regulatory attention belongs.

3. Regulating Finance in a Code-Driven World

Regulation must evolve to be function-based, not just entity-based. Instead of focusing solely on whether someone is a broker or an exchange by name, regulators should ask: Does this system perform regulated financial functions? And if so, who is responsible for enabling those functions?