- Paul Atkins slammed the Biden administration for heavy-handed enforcement action in the crypto sector.
- The chair pledged to create an “exemption framework” to accelerate DeFi innovation in the U.S.
The U.S. Securities and Exchange Commission (SEC) chairman, Paul Atkins, backed the DeFi ecosystem and took a swipe at the Biden administration’s heavy enforcement action approach in the crypto sector.
During a roundtable on the 9th of June titled “DeFi and the American Spirit,” Atkins said,
“The prior U.S. government administration discouraged Americans from participating in these market-based systems by asserting through lawsuits, speeches, regulation, and threatened regulatory action that participants and staking-as-a-service providers may be engaged in securities transactions.”
Atkins supports DeFi
In addition, Atkins hailed self-custody as a ‘foundational American value’ and backed DeFi protocols. He went on and added,
“I’m in favor of affording greater flexibility to market participants to self-custody crypto assets, especially where intermediation imposes unnecessary transaction costs or restricts the ability to engage in staking and other on-chain activities.”
Self-custody platforms grant users full control over private keys, remove third parties, and enhance decentralization. However, some of these platforms, like MetaMask, were sued by the Biden-era SEC.
Reacting to the DeFi lawsuits, Atkins blasted the former administration’s action for undermining innovation.
“Unfortunately, the prior administration undermined innovation in self-custodial digital wallets and other onchain technologies by asserting through regulatory actions that the developers of such software may be conducting brokerage activities.”
He added that he instructed the agency staff to offer a relief framework for ‘innovation’ to achieve Trump’s vision of making America the crypto capital of the world.
“I have directed the staff to consider a conditional exemptive relief framework or “innovation exemption” that would expeditiously allow registrants and non-registrants to bring on-chain products and services to market.”
His remarks were welcomed by key players in the sector. Uniswap [UNI] founder Hayden Adams stated,
“Insane how far DeFi has come so quickly. Now, government agencies publicly recognize it as a national priority.”
As the home and pioneer of DeFi, Ethereum could be the net beneficiary of the ‘relief framework’ according to Eric Conner.
“If this becomes policy… Ethereum gets regulatory clarity for staking, self-custody, and open-source infra. The tide is turning. Let’s build.”
ETH surged 5% after the update, probably lifted by BTC retest of $110K. But overall, the DeFi sector outperformed the rest by 5%, underscoring Conner’s outlook.
Source: Velo
