Highlights
The U.S. Securities and Exchange Commission (SEC) is set to host a high-level roundtable titled “DeFi and the American Spirit” on June 9, at its headquarters in Washington, D.C. The event will focus on the decentralized finance (DeFi) ecosystem and aims to address ongoing questions about the future of regulation in the digital asset space.
The roundtable is the fifth in a series held by the SEC’s Crypto Task Force, led by Commissioner Hester Peirce. SEC Chair Paul Atkins is also scheduled to deliver remarks. The SEC is inviting public participation, both in person and through a live webcast, to gather feedback from industry participants and the broader public.
At the June 9 event, regulators, programmers, and legal specialists will discuss how DeFi can remain compliant with existing laws. The roundtable, as explained by the SEC, is part of an effort to assess how financial applications built on blockchain operate and to determine if they need to comply with existing laws.
Topics will include the role of smart contracts, token governance, and how automated systems operate without central intermediaries. Participants will also explore how to balance investor protection with innovation, particularly in areas where existing regulation does not clearly apply.
Commissioner Peirce, who leads the Crypto Task Force, has called for “open dialogue” around the issue. “We want to engage with developers and users to better understand their models and concerns,” she said during a recent briefing.
Discussions will likely focus on how the SEC intends to handle tokenized real-world assets as more companies start bridging blockchain with real items. Topics such as crypto custody, fraud concerns, and guaranteeing market integrity will make up a significant part of the discussion.
In previous crypto roundtables, the US SEC examined the classification of digital tokens as securities. During these sessions, participants debated the legal obligations of platforms facilitating token trading and custody. Chair Atkins has stated the goal is to “provide clarity” and develop policy that reduces uncertainty in the market.
During his recent address to the Senate Appropriations Subcommittee, Atkins said, “This Task Force will work quickly to provide guidance where it is most needed.” He also noted that although the SEC’s budget request remains at $2.149 billion, the agency is operating efficiently due to workforce changes.
The fact that the SEC is reaching out to companies and individuals signals a move towards teamwork in the market. VanEck and SegMint are among the firms that have started interacting with the Commission. SegMint recently scheduled a talk to introduce their NFT fractionalization service, offering NFTs for luxury watches and trading cards.
The proposal reveals that SegMint will provide digital certificates linked to real assets and enable fractional possession. The firm is considering how federal securities laws apply to the offerings and checking if any exemptions are available.
Following BlackRock’s meeting with the Crypto Task Force about crypto trading and compliance last month, this roundtable was convened. They indicate that big banks are wanting to influence the directions future regulations might follow.
Chair Paul Atkins assumed leadership of the US SEC under the new Donald Trump administration. In his recent speech to Congress, he reaffirmed his support for a regulatory approach that encourages growth while enforcing existing laws. The administration has reduced the SEC’s headcount by 15% this fiscal year under a voluntary buyout program.
Atkins noted that some of the budget surplus would be used to cover costs linked to staff departures. While staffing has changed, the SEC has successfully continued to communicate with crypto firms and deal with issues in the regulatory system.
The roundtable occurring on June 9 will be broadcast live on the internet and is designed to help understand how DeFi is changing the US financial arena.
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