US SEC Chairman: We are planning an "innovative exemption" for Decentralized Finance protocols and should not be penalized for the malicious use by others.

SEC Chairman Paul Atkins revealed that he is studying DeFi "innovation exemptions", reflecting the Trump administration's shift in attitude towards cryptocurrency regulation. (Synopsis: Michigan proposes 4 crypto bills: pension investment BTC, green mining and tax relief, and opposition to CBDC) (Background supplement: Viewpoint never underestimate the US stablecoin bill) Paul Atkins, chairman of the (SEC) of the U.S. Securities and Exchange Commission, revealed on June 9, 2025 that the SEC is actively studying decentralized finance (DeFi) platforms offer "innovation exemptions" with the goal of lowering regulatory barriers and facilitating developers. SEC Proposes "Innovation Exemption" to Simplify DeFi Development At the SEC's fifth cryptocurrency roundtable, Chairman Atkins made it clear that the study of DeFi "innovation exemptions" is to simplify the development path. He has instructed staff to study amending the rules to "provide the necessary facilities for issuers and intermediaries seeking to manage the on-chain financial system". This potential exemption, which Atkins calls an "innovation exemption" (innovation exemption), is expected to allow regulated entities to bring on-chain products and services to market "expeditiously." This is a departure from former Chairman Gary Gensler's emphasis on enforcement, indicating that the SEC's regulatory model is shifting from enforcement-first to rule-making and cooperation. Atkins said of blockchain's innovation potential that "we shouldn't automatically fear the future." Regulatory Thinking Shift: Focus on Developer Responsibility and Innovation SEC Chairman Paul Atkins and Commissioner Hester Peirce both argue that developers should not be blamed solely for using code (DeFi tools) developed by someone, a move that could involve the right to free speech under the First Amendment to the U.S. Constitution. Commissioner Peirce said, "The SEC should not violate a person's First Amendment rights simply because they publish code and others use it for activities traditionally regulated by the SEC," Commissioner Peirce said. The Innovation Waiver, if implemented, is expected to help accelerate on-chain financial product development, provide legal clarity, and strengthen the U.S. leadership in crypto innovation. However, the challenge remains, and the SEC needs to effectively distinguish between genuine and fake decentralized projects. Commissioner Peirce warned: Centralized entities cannot evade regulation simply by labeling them 'decentralized.' Related reports 6 Nobel Prize winners "boycott Trump": The Great Beauty Act hits low-income households, the reform of the national debt to fatten the rich will collapse, forcing the whole people to speculate in stocks! The United States passed the "Trump account" bill: newborns each send $1,000 to buy stocks Lawyers warn: If the United States does not pass the "GENIUS" stablecoin bill in time, crypto regulatory reform will be postponed to 2029 "SEC chairman: is planning an "innovation exemption" for DeFi protocols, and should not be punished for malicious use by others" This article was first published in BlockTempo "Dynamic Trends - The Most Influential Blockchain News Media".