SEC Explores Policy Changes to Support Decentralized Finance Platforms

At a recent roundtable, SEC Chair Paul Atkins emphasized the importance of DeFi in promoting economic freedom and called for regulations that support on-chain systems.

Summary

During a recent cryptocurrency roundtable, SEC Chair Paul Atkins stated that decentralized finance (DeFi) reflects American values like economic freedom and private property rights. He criticized past SEC actions that limited market participation and urged for regulations that support DeFi technologies. Atkins highlighted the necessity for formal rules to facilitate on-chain systems, aiming to enhance the U.S. position in cryptocurrency innovation.

Terms & Concepts
  • Decentralized Finance (DeFi): A sector within the cryptocurrency industry aimed at recreating financial tools and services using blockchain technology without traditional intermediaries.
  • On-chain: Transactions or operations that occur directly on a blockchain, utilizing its decentralized and transparent nature.