SEC Chair Paul Atkins Advocates for DeFi and Rejects Forced Intermediaries in Cryptocurrency Roundtable

SEC Chairman Paul Atkins emphasized the importance of decentralized finance (DeFi) during the agency's fifth cryptocurrency roundtable, framing it as a natural extension of American traditions like private property rights and open markets. He described blockchain technology as a peer-to-peer system that records digital asset ownership without centralized control, highlighting the competitive fee marketplace among network participants for transaction validation.

Atkins criticized the previous administration's approach, which he said discouraged participation through enforcement actions and ambiguous public statements. He praised the Division of Corporation Finance for clarifying that staking and validation activities generally fall outside securities regulations but argued such guidance lacks formal rulemaking power.

The chairman called for clear, congressionally authorized regulations, warning that forced intermediation could stifle innovation by adding unnecessary costs and restrictions to blockchain functionality.