The U.S. Securities and Exchange Commission may soonease the regulatory burden on decentralized finance platforms as Chairman PaulAtkins outlines a potential "innovation exemption" aimed atprotecting developers and enabling new blockchain-based systems to thrive.In the final session of a five-part crypto roundtableseries, SEC Chairman Paul Atkins signaled a notable shift in regulatory tone,especially regarding decentralized finance (DeFi).JUST IN: SEC Chair Paul Atkins announces he's in favor of Bitcoin & crypto self custody. 👀"The right to have self custody of ones private property is a foundational American value." 🇺🇸 pic.twitter.com/p9Ne97baxK— Bitcoin Magazine (@BitcoinMagazine) June 9, 2025Code, Not ConductSpeaking to industry experts and developers on Monday,Atkins said he has directed SEC staff to explore exemptions or guidance thatwould let DeFi platforms operate with fewer barriers. The proposal seeks to support on-chain financialsystems and reflect the technological shift toward decentralized models.He emphasized that this principle should not vanishonline, especially in a financial ecosystem increasingly powered bydecentralized technologies. The comments mark a stark contrast with previousSEC leadership, which leaned heavily on enforcement and broad interpretationsof securities laws.Read more: Circle Shares Extend Rally, Gain 15% on Monday to Hit $134 After Strong IPOAt the roundtable titled "DeFi and the AmericanSpirit," Atkins and other Republican commissioners argued that softwaredevelopers should not be held liable for how decentralized tools are used. He rejected the notion that writing code constitutes aregulated activity if that code enables financial transactions. CommissionerHester Peirce echoed this view, warning against infringing on First Amendmentrights. DeFi and the Regulatory CrossroadsDeFi refers to the class of blockchain-based toolsthat replicate traditional financial services, such as lending, trading, andinsurance, without relying on centralized intermediaries. These platforms havelong existed in a gray area of U.S. financial regulation, with developers oftenfacing investigations or uncertainty about their legal status.Atkins called for reevaluating legacy frameworks and asked staff to assess whether new guidance or rulemaking would helpentities interact with DeFi tools while remaining compliant.You may also like: UK Hires First Crypto Specialist for Insolvencies as Recovery Cases RiseThis change in direction coincides with a broadershift at the SEC following the departure of former Chair Gary Gensler and thearrival of the Trump-era appointees. Under the new leadership, the SEC hasrolled back several enforcement actions and launched a Crypto Task Forcefocused on industry engagement.The roundtables, held throughout the past few months,covered custody, trading, tokenization, and securities definitions. The latestdiscussion on DeFi capped the series, reinforcing the agency’s pivot fromadversarial enforcement to rulemaking tailored to emerging technologies.This article was written by Jared Kirui at www.financemagnates.com.