SEC Chair’s Landmark Speech: Is DeFi the Continuation of the American Spirit?Paul Atkins’ Six-Point Address that Shocked the Crypto World
On June 9, 2025, Paul S. Atkins, the newly appointed Chairman of the U.S. Securities and Exchange Commission (SEC), delivered a groundbreaking speech at the “DeFi and the American Spirit” roundtable in Washington. The address quickly became a hot topic across the crypto industry, with insiders calling it “the most open and crypto-friendly official statement in the past five years.”
Some even described the speech as: “The overture to comprehensive DeFi regulation — and the purest expression of the American spirit.” What kind of address could spark such buzz and send waves of joy through the DeFi community and crypto practitioners alike?
This article breaks down the six core takeaways from Chairman Atkins’ remarks, offering in-depth insights into the regulatory logic, future policy direction, and the broader implications for crypto markets, developer communities, and the regulatory battlefield.
- DeFi Represents the American Spirit — Not a Threat to Its Institutions
Paul Atkins opened his speech with a striking statement:“The DNA of the DeFi movement contains America’s economic liberty, private property rights, and spirit of innovation — these are the core values of our nation.”
This opening immediately set the tone: DeFi is not a threat, but an extension of “American values.” From a political rhetoric standpoint, this is a nationalized framing of decentralized finance — an effort to turn public suspicion of emerging technologies into a cultural identity.
It serves as both a positive endorsement of DeFi and a signal of shifting regulatory posture — from enforcement to guidance. This shift is aimed at preventing the brain drain and tech exodus caused by excessive crackdowns.
- Blockchain Redefines Ownership — SEC Must Rethink What Constitutes a Security
Atkins followed with a pivotal remark:“Blockchain makes us rethink ownership, property rights, and transfer. It is a shared database that requires no intermediaries.”
He did not shy away from acknowledging blockchain’s revolutionary nature. In fact, he pointed directly at the heart of the issue: existing securities laws are built on intermediaries and centralized trust. Blockchain bypasses both, fundamentally challenging the very foundations of current legal frameworks.
Put simply, the SEC Chairman recognizes that in the on-chain world, traditional concepts like “issuer,” “intermediary,” and “liable party” have become blurred. The next step? SEC must decide whether to extend outdated rules or craft a new paradigm.
- PoS Staking Is Not a Security: A Clear Softening in the SEC’s Position
Atkins stated unequivocally:“Participating in a PoS network as a miner, validator, or staking service provider does not fall under the scope of federal securities laws.”
This line became one of the most celebrated “golden quotes” in the crypto community. Previously, SEC Chairman Gary Gensler had repeatedly suggested that staking in PoS systems like Ethereum might constitute securities activity — leading to investigations and fines for platforms like Coinbase and Kraken.
Now, Atkins has directly overturned that notion, affirming that PoS participants should not be treated as “issuers of securities.” This may pave the way for staking-related services in the U.S. to operate free from regulatory overhang.
However, he added a caveat:“This is not yet codified law,” — implying this is still exploratory and would require further legislative backing.
- Self-Custody Is a Constitutional Freedom — It Shouldn’t Disappear On-Chain
Atkins made another powerful assertion:“The right to self-custody one’s private property is a fundamental American value. It should not disappear just because people go online.”
This is perhaps the clearest policy support to date for wallet developers and on-chain application builders. The SEC had previously explored regulating wallet developers on the grounds they may be engaged in “unregistered broker activities.” Atkins, in contrast, flipped the narrative, saying:“Writing code is not the same as selling securities.”
He even cited court precedents:“You don’t sue a self-driving car developer just because someone used the car to rob a bank.”
This statement could end the climate of fear that has plagued wallet and contract developers in the U.S., and encourage more on-chain applications to move forward with confidence.
- Self-Executing Code Should Not Be Banned Simply Because “No One Controls It”
Atkins further commented:“On-chain code that supports peer-to-peer transactions does not require intermediaries, nor should it be restricted by century-old regulatory frameworks.”
Legacy securities laws are based on the assumption of a “responsible party.” Even platforms must name legal reps, operators, or compliance officers. But the blockchain world operates differently: many DApps run on autonomous smart contracts. “Code is law” has replaced the notion of “platform as liable party.”
Atkins’ position was crystal clear: regulators should not invalidate technology simply because it lacks a human face. This perspective could significantly reduce legal risks for projects like Uniswap and Tornado Cash, and represents a milestone signal for DAOs and contract platforms.
- “Innovation Exemption” Is Coming: On-Chain Services May Gain Legal Pathways
In his final point, Atkins declared:“I’ve instructed staff to explore the creation of an ‘Innovation Exemption’ — a legal path for projects that wish to operate compliantly.”
The SEC has long struggled with a core dilemma: how to avoid stifling innovation while still enforcing Congressional mandates. The proposed “Innovation Exemption” is a policy innovation in itself — akin to a regulatory sandbox, allowing qualified projects to launch under time-bound and condition-specific oversight. This could be the legitimization path for DeFi products within U.S. borders.
Notably, Atkins emphasized:“This isn’t just for registered projects. Unregistered developers can also participate.”This could serve as a “green card” for on-chain startups, DAOs, and developer communities.
Final Words
Paul Atkins’ speech delivered six unprecedented signals:
DeFi is no longer a “gray area” — it’s an extension of American values;
The SEC is ready to revisit securities law through an on-chain lens;
PoS staking may no longer fall under securities classification;
Wallet and smart contract developers are not presumed criminals;
Self-executing smart contracts may now operate lawfully;
The Innovation Exemption could offer a legal path for on-chain projects.
This is undoubtedly the most progressive, innovation-friendly official stance from the SEC since the Gary Gensler era. Of course, this is still in the “policy signaling” stage — formal legislation and rulemaking will take time. But one thing is clear: U.S. regulators are shifting from hard-line suppression to guided experimentation.
Seen through the lens of President Trump’s vision to make America the “global capital of crypto”, Atkins’ address marks not just a shift in regulatory tone, but the beginning of a new regulatory paradigm in crypto finance.
