SEC Crypto Roundtable: Paul Atkins Declares Support For Crypto Custody & DeFi Activities

SEC Chair Paul Atkins has again shown his intention to create a regulatory-friendly environment for the crypto industry. This time, Atkins spoke in favor of the right to self-custody at the SEC crypto roundtable and revealed that he has directed the staff to see if they need to provide further guidance on DeFi activities.

Paul Atkins’ Remarks At The June SEC Crypto Roundtable

In his opening remarks at the crypto roundtable, the SEC Chair stated that another core feature of blockchain technology is the ability for individuals to have self-custody. He further declared that the right to have self-custody of one’s private property is a “foundational American value” that shouldn’t change even on the internet.

Atkins also mentioned that he is in favor of affording crypto users greater flexibility, allowing them to self-custody their assets. He specifically alluded to granting this flexibility in instances where intermediation imposes unnecessary transaction costs or restrictions on staking or on-chain activities.

The SEC Chair made these statements at the SEC crypto roundtable today. The crypto roundtable dubbed ‘DeFi and the American Spirit’ touched on DeFi activities and investor protection. Stakeholders also discussed smart contracts, token governance, and whether the industry needs new rules and regulations on these issues.

Atkins noted how the prior administration undermined self-custody and other on-chain technologies. However, he believes that Engineers should not be subject to the federal securities laws solely for publishing this type of software code. As CoinGape reported, the US SEC has already ruled that certain proof-of-staking activities are not securities. This move has helped ease regulatory concerns for stakers and service providers.

Plans To Provide Further Guidance If Necessary

As part of his remarks at the SEC crypto roundtable, Paul Atkins said that he plans to provide further guidance if necessary. Atkins noted that the current securities regulations already contemplate the use of new technologies by issuers and intermediaries.

However, he has asked the staff to consider whether amendments to the Commission’s rules and regulations would be better suited to provide needed accommodation for issuers and intermediaries for issuers and intermediaries who seek to administer on-chain financial systems.

It is worth mentioning that the US Congress is also set to deliberate on the Blockchain Regulatory Certainty Act (BRCA), which would help protect DeFi founders. As CoinGape reported, eight crypto firms, including Uniswap, have shown support for BRCA’s inclusion in the CLARITY Act.

While the SEC works on a regulatory framework for on-chain financial markets, Atkins revealed at the SEC crypto roundtable that he has directed the staff to consider a conditional exemptive relief framework for DeFi Platforms. He noted that it would expeditiously allow registrants and non-registrants to bring on-chain products and services to market.