New SEC Chair Proposes Innovation Exemption, DeFi May Be Legalized.

Author: SuperEx

Translation: Baihua Blockchain

On June 9, 2025, Paul S. Atkins, the newly appointed Chair of the U.S. Securities and Exchange Commission (SEC), delivered a landmark speech at the "DeFi and the American Spirit" roundtable in Washington. This speech quickly became a hot topic in the crypto industry, with insiders calling it "the most open and supportive official statement on crypto in the past five years."

Some even described the speech as: "A prelude to comprehensive DeFi regulation—and the purest expression of the American spirit." What kind of speech could provoke such a passionate response and create a wave of joy in the DeFi community and among crypto practitioners?

1. DeFi Represents the American Spirit—Not a Threat to Institutions

Paul Atkins opened his speech with a shocking statement:

“The DNA of the DeFi movement embodies America's economic freedom, property rights, and spirit of innovation—these are the core values of our nation.”

This opening immediately set the tone: DeFi is not a threat, but an extension of "American values." From a political rhetoric perspective, this is a national interpretation of decentralized finance (DeFi), aimed at transforming public skepticism about emerging technologies into a cultural identity.

This is both a positive endorsement of DeFi and marks a shift in regulatory posture—from enforcement-focused to guidance-oriented. This shift aims to prevent talent loss and technological outflow due to excessive suppression.

2. Blockchain Redefines Ownership—SEC Must Rethink What Constitutes a Security

Atkins then made a key comment:

“Blockchain compels us to rethink ownership, property rights, and transfer. It is a shared database that requires no intermediaries.”

He did not shy away from the revolutionary nature of blockchain, clearly pointing out the core issue: current securities laws are based on intermediaries and centralized trust, while blockchain bypasses both, fundamentally challenging the foundation of existing legal frameworks.

In short, the SEC Chair acknowledged that in the on-chain world, traditional concepts such as "issuer," "intermediary," and "responsible party" have become blurred. What comes next? The SEC must decide whether to continue outdated rules or build a new paradigm.

3. PoS Staking Is Not a Security: SEC's Position Clearly Softens

Atkins explicitly stated:

“Participating in a PoS network as a miner, validator, or staking service provider is not subject to federal securities law regulation.”

This statement became one of the most revered "golden phrases" in the crypto community. Previously, former SEC Chair Gary Gensler had repeatedly hinted that staking in PoS systems like Ethereum could constitute securities activities, leading to investigations and fines for platforms like Coinbase and Kraken.

Now, Atkins has directly overturned this view, confirming that PoS participants should not be seen as "security issuers." This could clear regulatory hurdles for staking-related services within the United States.

However, he added a warning: “This has not yet become codified law,” meaning this position is still exploratory and requires further legislative support.

4. Self-Custody Is a Constitutionally Granted Freedom—It Should Not Disappear Because of On-Chain Activity

Atkins made another strong assertion:

“The right to self-custody personal property is a fundamental American value and should not simply disappear because people are on-chain.”

This is the clearest policy support to date for wallet developers and on-chain application developers. Previously, the SEC had considered regulating wallet developers on the grounds that they might engage in “unregistered brokerage activities.” Atkins completely reversed this narrative, stating: “Writing code does not equal selling securities.”

He even cited a court precedent: “You wouldn’t sue the developer of a self-driving car just because someone used it to rob a bank.”

This statement could end the atmosphere of fear surrounding wallet and contract developers in the U.S., encouraging more on-chain applications to boldly move forward.

5. Self-Executing Code Should Not Be Prohibited Just Because It Is "Uncontrolled"

Atkins further commented:

“On-chain code that supports peer-to-peer transactions requires no intermediaries and should not be constrained by century-old regulatory frameworks.”

Traditional securities laws are based on the assumption of "responsible parties," meaning even platforms must designate legal representatives, operators, or compliance officers. But the blockchain world is different: many DApps operate on autonomous smart contracts. "Code is law" replaces the concept of "platform as responsible party."

Atkins' position is very clear: regulators should not deny the legitimacy of technology simply because it lacks a "face." This viewpoint could significantly reduce the legal risks for projects like Uniswap and Tornado Cash and set a milestone signal for DAOs and contract platforms.

6. "Innovation Exemption" Is Coming: On-Chain Services May Gain Legal Pathways

In his final point, Atkins announced:

“I have instructed staff to explore the creation of an 'innovation exemption'—providing a legal pathway for projects wishing to operate in compliance.”

For a long time, the SEC has faced a core dilemma: how to fulfill its congressional mandate without stifling innovation. The proposed "innovation exemption" itself is a policy innovation, similar to a regulatory sandbox, allowing eligible projects to be regulated under limited time and specific conditions. This could be the pathway for the legalization of DeFi products within the United States.

Notably, Atkins emphasized: “This applies not only to registered projects; unregistered developers can also participate.” This could become a "green card" for on-chain startups, DAOs, and developer communities.

Conclusion

Paul S. Atkins' speech conveyed six unprecedented signals:

DeFi is no longer a "gray area"—it is an extension of American values;

• The SEC is prepared to re-examine securities laws from an on-chain perspective;
• PoS staking may no longer be classified as securities;
• Wallet and smart contract developers are no longer presumed criminals;
• Self-executing smart contracts may operate legally;
• The "innovation exemption" may provide legal pathways for on-chain projects.

This is undoubtedly the most progressive and innovation-supportive official stance from the SEC since the era of Gary Gensler. Of course, this is still in the "policy signal" stage, and formal legislation and rule-making will take time. But one thing is clear: U.S. regulators are shifting from hardline suppression to guiding experimentation.

Combined with President Trump's vision of making the U.S. the "global crypto capital," Atkins' speech not only marks a shift in regulatory tone but also the beginning of a new regulatory paradigm in the crypto finance sector.

Article link: https://www.hellobtc.com/kp/du/06/5891.html

Source: https://s.c1ns.cn/qpuWD

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