“I’ve instructed SEC staff to evaluate potential rule modifications that would provide relief for issuers and intermediaries developing blockchain-administered financial systems,” Atkins stated. This initiative, he added, could function as a targeted “innovation carve-out”—a temporary regulatory reprieve that allows for accelerated deployment of new decentralized products in the U.S. market.
Atkins emphasized that developers in the DeFi ecosystem should not be held liable for the autonomous ways in which their software is used. “Many of these applications operate without a central operator or governance body. Blockchain has made it possible to create entirely new classes of financial infrastructure that are trustless and self-executing,” he noted. “We should not fear the future by default.”
This marks a notable departure from prior enforcement-heavy approaches under previous SEC leadership. The new tone reflects a broader ideological shift within the Commission. With Republicans now holding a 3-to-1 majority over Democrats, the agency’s crypto policy appears increasingly aligned with free-market principles and regulatory restraint—especially toward decentralized technologies.
SEC Commissioner Hester Peirce, who leads the agency’s recently established Crypto Working Group, reinforced the priority of safeguarding civil liberties. “Publishing code should not be considered a regulated activity simply because others may use it in ways traditionally overseen by the SEC,” she asserted. Peirce also cautioned, however, against abuse of the “decentralized” label, noting, “Centralized entities cannot sidestep regulation by branding themselves as something they’re not.”
Industry figures welcomed the shift. Erik Voorhees, founder of the DeFi exchange ShapeShift, reflected humorously, “Twelve years ago, when I got my first SEC subpoena, I never imagined being invited to speak in front of the Commission. […] I appreciate the change in tone—it’s a meaningful win for the American blockchain ecosystem.”
This isn't the first signal of pro-crypto reform under Atkins. During his inaugural session as Chairman at the SEC’s May 12 meeting focused on tokenization, he committed to building a rational, risk-adjusted regulatory architecture. The latest DeFi developments suggest that commitment is materializing into concrete policy shifts.
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