SEC Chair Atkins Speech Marks “Revolution” for DeFi Innovation in the United States

Today, SEC Chairman Paul Atkins gave a speech entitled – “American Leadership in the Digital Finance Revolution” – and the speech title alone is a significantly positive tide change signal.

In the speech, Chair Atkins also highlighted the benefits of DeFi. Below, you can find a few of our favorite quotes from his speech:

“As I have said before, the right to have self-custody of one’s private property is a core American value. I believe deeply in the right to use a self-custodial digital wallet to maintain personal crypto assets and participate in on-chain activities like staking.”

“On-chain software comes in many shapes and sizes—some of these systems are truly decentralized and not operated by any intermediary. [...] It is essential that any crypto asset regulatory market structure create a path for software developers to unleash on-chain software systems that do not require operation by any central intermediary.”

“Decentralized finance software systems—like automated market makers—facilitate automated, non-intermediated financial market activity. Federal securities laws have always assumed the involvement of intermediaries that require regulation, but this does not mean that we should interpose intermediaries for the sake of forcing intermediation where the markets can function without them. We will create space in our markets for both models, by protecting pure publishers of software code, drawing reasonable lines to distinguish intermediated and disintermediated activity, and creating rational and workable rules of the road for intermediaries that seek to operate on-chain software systems.”

“Decentralized finance and other forms of on-chain software systems will be part of our securities markets and not drowned out by duplicative or unnecessary regulation.”

“Finally, innovation and entrepreneurialism are the engines of the American economy. President Trump has described America as a “nation of builders.” Under my leadership, the Commission will encourage our nation’s builders rather than constrain them with red tape and one-size-fits-all rules.”
“Under my vision for an innovation exemption, innovators and visionaries will be able to immediately enter the market with new technologies and business models but will not be required to comply with incompatible or burdensome prescriptive regulatory requirements that hinder productive economic activity.”

SEC Chairman Paul Atkin’s full speech is available on the SEC’s website at the link below:

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