The narrative of U.S. encryption regulation is undergoing a historic transformation.
On June 9, Eastern Time, Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), delivered a landmark speech at the "DeFi and the American Spirit" roundtable, clearly stating that the SEC will support DeFi innovation and encryption self-custody rights. He not only criticized the previous administration's hardline approach of "enforcement-based regulation" but also promised to bring certainty to the industry through formal rule-making.
Self-custody: Undeniable "American values"
Atkins sets the stage by directly linking blockchain technology with the core values of "American economic freedom, property rights, and open innovation." He emphasizes that self-custody is a "fundamental American value" and should not be restricted due to assets being on-chain or connected to the internet.
He sharply criticized the previous government's practice of vaguely classifying decentralized network activities such as mining, verification, and staking as securities actions through law enforcement actions and public statements, arguing that this severely hinders technological innovation. Atkins explicitly stated, "The SEC's approach will be through formal rule-making, rather than relying on the uncertain 'regulation by enforcement'; all regulatory actions must be based on the clear authority granted by Congress."
Regulatory "Deregulation": An "Innovation Exemption" Framework Tailored for DeFi
Regarding the core issue of DeFi, Atkins has released an unprecedented positive signal. He revealed that he has instructed SEC staff to study revisions to existing rules and explore a "conditional exemption framework" or "innovation exemption" mechanism tailored for DeFi.
This framework aims to provide a compliant transition path for DeFi protocols, allowing both registered and unregistered entities to launch on-chain products and services more quickly and flexibly while meeting investor protection requirements, thus significantly reducing compliance barriers. He specifically pointed out that the mandatory introduction of intermediaries would "increase unnecessary transaction costs" and restrict native on-chain activities such as staking, and the SEC will grant market participants greater self-custody flexibility.
Developers are no longer "criminals": Restoring the reputation of code freedom
The responsibility of developers is the long-standing sword of Damocles hanging over the encryption world. In this regard, Atkins has also provided clear reassurance. He publicly criticized the previous government's regulatory logic that viewed software engineers developing neutral tools as "unregistered brokers."
He sharply compared this practice to "suing car manufacturers for crimes committed by drivers using self-driving cars," pointing directly to its logical absurdity. Atkins argued that merely releasing software code should not automatically trigger securities law obligations, as the decentralized nature of blockchain applications determines that they cannot be fitted into the traditional issuer-centric market framework. This statement undoubtedly provides significant regulatory certainty expectations for all wallet and DeFi protocol developers.
Market Discussion: Prelude to DeFi Summer 2.0?
KOL @wublockchain12 from platform X pointed out that this marks a shift in U.S. encryption regulation from confrontation to collaboration, potentially ushering in a new era of DeFi development. Trader @rickawsb is even more optimistic, predicting that "DeFi Summer" may reemerge as a result. It is widely believed in the industry that this policy shift could not only clear obstacles for the compliance paths of projects like Solana and XRP but also pave the way for the approval of more types of encryption asset ETFs.
This series of statements is not only a positive response to the long-standing calls of the encryption industry but also resonates with the Trump administration's recent political vision of 'making the U.S. a center for encryption innovation.' However, Atkins also emphasized that all new regulations must be predicated on 'protecting investors and preventing fraud.' How will the SEC strike a balance between caution and innovation? The subsequent details of rule amendments and exemption frameworks will be crucial in determining the next phase of the encryption world, and the global market is worth holding its breath for.
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"Self-custody is an American value": SEC Chair Atkins elaborates on new regulatory thinking
The narrative of U.S. encryption regulation is undergoing a historic transformation.
On June 9, Eastern Time, Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), delivered a landmark speech at the "DeFi and the American Spirit" roundtable, clearly stating that the SEC will support DeFi innovation and encryption self-custody rights. He not only criticized the previous administration's hardline approach of "enforcement-based regulation" but also promised to bring certainty to the industry through formal rule-making.
Self-custody: Undeniable "American values"
Atkins sets the stage by directly linking blockchain technology with the core values of "American economic freedom, property rights, and open innovation." He emphasizes that self-custody is a "fundamental American value" and should not be restricted due to assets being on-chain or connected to the internet.
He sharply criticized the previous government's practice of vaguely classifying decentralized network activities such as mining, verification, and staking as securities actions through law enforcement actions and public statements, arguing that this severely hinders technological innovation. Atkins explicitly stated, "The SEC's approach will be through formal rule-making, rather than relying on the uncertain 'regulation by enforcement'; all regulatory actions must be based on the clear authority granted by Congress."
Regulatory "Deregulation": An "Innovation Exemption" Framework Tailored for DeFi
Regarding the core issue of DeFi, Atkins has released an unprecedented positive signal. He revealed that he has instructed SEC staff to study revisions to existing rules and explore a "conditional exemption framework" or "innovation exemption" mechanism tailored for DeFi.
This framework aims to provide a compliant transition path for DeFi protocols, allowing both registered and unregistered entities to launch on-chain products and services more quickly and flexibly while meeting investor protection requirements, thus significantly reducing compliance barriers. He specifically pointed out that the mandatory introduction of intermediaries would "increase unnecessary transaction costs" and restrict native on-chain activities such as staking, and the SEC will grant market participants greater self-custody flexibility.
Developers are no longer "criminals": Restoring the reputation of code freedom
The responsibility of developers is the long-standing sword of Damocles hanging over the encryption world. In this regard, Atkins has also provided clear reassurance. He publicly criticized the previous government's regulatory logic that viewed software engineers developing neutral tools as "unregistered brokers."
He sharply compared this practice to "suing car manufacturers for crimes committed by drivers using self-driving cars," pointing directly to its logical absurdity. Atkins argued that merely releasing software code should not automatically trigger securities law obligations, as the decentralized nature of blockchain applications determines that they cannot be fitted into the traditional issuer-centric market framework. This statement undoubtedly provides significant regulatory certainty expectations for all wallet and DeFi protocol developers.
Market Discussion: Prelude to DeFi Summer 2.0?
KOL @wublockchain12 from platform X pointed out that this marks a shift in U.S. encryption regulation from confrontation to collaboration, potentially ushering in a new era of DeFi development. Trader @rickawsb is even more optimistic, predicting that "DeFi Summer" may reemerge as a result. It is widely believed in the industry that this policy shift could not only clear obstacles for the compliance paths of projects like Solana and XRP but also pave the way for the approval of more types of encryption asset ETFs.
This series of statements is not only a positive response to the long-standing calls of the encryption industry but also resonates with the Trump administration's recent political vision of 'making the U.S. a center for encryption innovation.' However, Atkins also emphasized that all new regulations must be predicated on 'protecting investors and preventing fraud.' How will the SEC strike a balance between caution and innovation? The subsequent details of rule amendments and exemption frameworks will be crucial in determining the next phase of the encryption world, and the global market is worth holding its breath for.