At the latest SEC crypto roundtable, major voices weighed in on DeFi, code, and regulation:
• SEC Chair Atkins: “Engineers shouldn’t be held liable for how others use their code.”
• Hester Peirce: “Code is protected speech under the First Amendment.”
• Erik Voorhees: “Smart contracts are a step function improvement over human regulators.”
• Others argued that decentralization isn't lawless — it's transparent, predictable, and user-driven
It’s good that the DeFi coding security factors are being discussed and that solutions are being presented. According to online research, it’s a complex topic that needs to be addressed as DeFi protocols involve managing user funds:
DeFi developers, much like open-source builders, contribute to decentralized and community-driven projects. However, because DeFi protocols manage user funds, they face added risks and responsibilities. While some initiatives provide incentives or governance protections, the question of how best to protect DeFi developers remains complex. The evolving nature of DeFi may require new frameworks to balance legal, financial, and technical safeguards while preserving decentralization.
