SEC Chair Paul S. Atkins Declares DeFi Aligns with “Core American Values”

• SEC Chair Atkins urges new rules to align crypto oversight with U.S. core values
• Innovation exemption proposed to ease on-chain product launches within compliance
• SEC encouraged to recognize DeFi’s resilience and modernize outdated regulations

In a bold address to the Crypto Task Force Roundtable in Washington D.C., SEC Chairman Paul S. Atkins emphasized the deep alignment between decentralized finance (DeFi) and core American values. 

Speaking at the Crypto Task Force Roundtable, he argued that economic liberty, private property rights, and a culture of innovation are embedded in the very structure of blockchain technology. 

Atkins called for a regulatory approach that fosters growth rather than restricts it, underscoring a fundamental shift in how the nation’s top securities regulator may approach the rapidly evolving world of digital assets in the coming years.

Atkins Calls for New Rules, Not Just Guidance, for DeFi

The Chairman tackled the core challenge of applying traditional securities laws to decentralized networks head-on. Acknowledging that these networks operate without central administrators through self-executing code, he noted that they challenge the existing regulatory model, which is focused on identifiable issuers and intermediaries.

To address this, Atkins called for a formal reassessment of the Commission’s framework. He specifically encouraged the adoption of concrete rules to clarify that individual participation in a network, such as acting as a validator or miner, does not automatically constitute a securities activity. He stressed that while recent staff statements have provided this clarification, only formal rulemaking can provide the legal certainty needed to protect innovation.

Related: The SEC Reconstitutes the NCIUS, May Soon Approve Multiple ETFs

SEC Chair Proposes “Innovation Exemption” for Developers

Significantly, Atkins introduced the concept of an “innovation exemption,” a conditional regulatory safe harbor designed to allow compliant developers and entrepreneurs to launch on-chain products more easily. 

He argued this would eliminate unnecessary transaction costs and unlock new financial tools, helping to push the United States toward becoming the global hub for crypto development, a vision previously articulated by President Trump.

Additionally, Atkins mounted a strong defense of self-custody rights, stating that owning crypto assets directly in a digital wallet is a modern extension of the American right to private property. He warned that regulations should not criminalize the software developers who create the tools for self-custody and decentralized trading.

Related: SEC to Host June 9 Roundtable on DeFi Regulation in Washington

In his closing remarks, Atkins urged the Commission to embrace the future rather than cling to outdated models, noting that centralized finance platforms have repeatedly failed during market stress while DeFi systems have proven resilient and efficient.