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A major shift could be coming to the U.S. crypto regulatory landscape. SEC Chair Paul Atkins has called for new measures that would expand self-custody rights and offer clearer rules for DeFi platforms. The proposals, if adopted, could lead to faster growth in decentralized finance and broader access to blockchain-based services.
The right to have self-custody of one’s private property is a foundational American value that should not disappear when one logs onto the internet.
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Speaking at the Crypto Task Force Roundtable in Washington D.C. on June 9, SEC Chair Paul Atkins laid out his vision for reshaping how decentralized technologies are treated by regulators. He focused on two key issues: the right to self-custody digital assets and the need for a more flexible regulatory environment for DeFi.
Atkins pointed to self-custody as a core principle, calling it a digital extension of personal property rights. “The right to have self-custody of one’s private property is a foundational American value that should not disappear when one logs onto the internet,” he said. He argued that intermediaries often add unnecessary costs and limit access to core blockchain features like staking.
The SEC chair also addressed the regulatory uncertainty that developers have faced in recent years. Previous guidance suggested that even software developers building self-custodial wallets could fall under securities regulations. Atkins pushed back on that thinking, saying it discouraged innovation and slowed the rollout of tools that let users manage their own crypto assets.
He warned against applying century-old rules to modern technology. “We should not automatically fear the future,” he stated. Atkins stressed that older regulatory structures were designed for centralized models and are not suited to decentralized systems.
Looking forward, Atkins outlined steps to create a clearer path for decentralized services. He revealed that the SEC is working on an “innovation exemption”—a framework that would allow DeFi products to enter the market more easily. He said this could apply to both registered and non-registered developers and would give projects a path to operate legally while still complying with certain standards.
The proposal could mark a major shift in how the SEC interacts with the DeFi sector. Rather than relying on enforcement actions, Atkins is pushing for updated rules that reflect the way decentralized technologies work in practice.