SEC Chair Paul S. Atkins Highlights Blockchain Potential in Remarks at Crypto Task Force Roundtable
On Monday, June 9, 2025, Paul S. Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), addressed participants at the Crypto Task Force Roundtable on Decentralized Finance (DeFi). The event, organized by Commissioner Hester Peirce and attended by other SEC officials, focused on the intersection of DeFi and American values, emphasizing economic liberty and innovation.
Atkins highlighted the transformative potential of blockchain technology, which allows for peer-to-peer transactions without the need for intermediaries. He underscored that the decentralized nature of blockchain enables individuals to own digital assets known as crypto assets, fundamentally altering traditional notions of ownership and property rights.
During his remarks, Atkins criticized the previous U.S. administration for discouraging participation in DeFi markets through regulatory actions and lawsuits. He noted that the SEC’s Division of Corporation Finance clarified that voluntary participation in proof-of-work or proof-of-stake networks does not fall under federal securities laws. While Atkins welcomed this clarification, he stressed the need for formal regulations to provide a clear framework for the industry.
A significant point of discussion was the importance of self-custody of crypto assets. Atkins affirmed that the right to self-custody should be protected, arguing that individuals should not lose their property rights when engaging with digital platforms. He advocated for greater flexibility in allowing market participants to manage their crypto assets independently, particularly when intermediation leads to increased costs or operational restrictions.
Atkins also addressed concerns regarding regulatory actions that could hinder innovation in self-custodial technologies. He argued that software developers should not be subject to securities laws merely for creating applications that facilitate decentralized transactions. He compared this situation to liability issues surrounding manufacturers of self-driving cars, emphasizing that developers should not be held accountable for third-party actions.
The SEC Chairman expressed optimism about the potential of on-chain software systems to enhance financial markets by reducing friction, increasing capital efficiency, and facilitating new financial products. He called for the SEC staff to explore whether existing regulations adequately accommodate these advancements or if amendments are necessary.
Looking ahead, Atkins proposed the idea of a conditional exemptive relief framework, dubbed the “innovation exemption,” which would allow businesses to introduce on-chain products while complying with specific conditions. This initiative aims to further position the U.S. as a leader in the crypto space, aligning with the vision of making America the “crypto capital of the planet.”
