Introduction
Decentralized Finance (DeFi) is a financial infrastructure that runs directly on blockchain technology, without the need for traditional financial intermediaries. Thanks to the absence of a central authority, transactions are carried out automatically through smart contracts and recorded transparently on the blockchain. Available to anyone with access to the internet, this system offers the advantages of greater individual control, low transaction costs and high transaction speed. However, it also has significant disadvantages such as regulatory deficiencies and vulnerabilities.
Exemption Policy and Developments
US Securities and Exchange Commission (SEC) Chairman Paul Atkins’ announcement that he is developing an “innovation exemption” policy for the DeFi ecosystem has had a significant impact on the industry. Atkins shared this approach with the public at a crypto-themed roundtable in 2025. The SEC Chairman described self-custody, or the right of individuals to keep their digital assets under their control, as “a fundamental principle that is consistent with American values.” He also stated that new regulations are being worked on to provide legal flexibility for easier development of on-chain products and services.
According to Atkins’ statements, one of the SEC’s goals is to create a framework that does not consider staking activities in networks using the Proof of Stake mechanism as securities transactions. In this context, the US Senate opened a new bill strengthening the legal basis of stable crypto assets for discussion and gave the first approval with 68 votes against 30. If the bill is adopted in the final vote, the final decision will be made by the US President.
As the crypto sector’s interest in these regulations increases, leading technology companies such as Apple, X, Google, Airbnb have reportedly started preliminary talks to integrate stable crypto assets into their business models. Uber CEO Dara Khosrowshahi announced that work is underway to use these assets in international payments. On the European front, Société Générale attracted attention by announcing that it will issue a stable crypto asset pegged to the US dollar.
SEC Commissioner Hester Peirce has long emphasized the safe Harbour model for DeFi projects. Under this model, It is envisaged that projects that meet certain conditions can be exempted for a maximum of two years on a limited volume and user basis. Peirce argues that this structure would support sectoral innovation without completely eliminating regulations. In addition, a joint sandbox model between the US and the UK has been proposed so that the financial regulators of the two countries can conduct simultaneous experimental tests. This model offers significant opportunities for international harmonization and practical solutions.
SEC’s Overall Strategy
The SEC’s current approach reflects a strategy that is more flexible and open to dialog than its previous hardline stance on DeFi. Chairman Atkins’ statements signal this shift, while Hester Peirce’s safe harbour proposal lays the institutional foundations for this transition. While there is no formalized exemption policy at this stage, there are plans to solicit public comment, launch pilot sandbox programs and clarify the legal framework.
Peirce also emphasizes that software developers should not be held responsible for others’ use of code, but that centralized entities cannot escape scrutiny by using the label “decentralized”. The fact that Republicans have a 3-1 majority in the SEC also increases the pressure for a more crypto-friendly policy. Atkins, on the other hand, states that blockchain enables disintermediated financial transactions and that regulatory bodies should not be an obstacle to these developments.
The SEC’s core enforcement policy aims to protect investor rights and ensure the integrity of financial markets by holding accountable individuals and institutions that violate federal securities laws. Various legal and administrative tools are used under this policy:
- Potential violations are investigated confidentially and conducted without public disclosure.
- Where the evidence is sufficient, cases are brought either in federal courts or administrative tribunals within the SEC.
- Sanctions such as disgorgement of ill-gotten gains, suspension of operations, and trading restrictions may be imposed.
- Lighter sanctions or deferrals may be available if companies and individuals cooperate with investigations.
- In federal litigation proceedings, legal representatives may be appointed to protect and return ill-gotten gains to investors.
Conclusion
This flexible policy framework, which the SEC plans to introduce, aims to better align DeFi projects with existing regulatory requirements. The potential benefits of this approach include
- Reduces the victimization of individual and institutional investors by returning ill-gotten gains to investors.
- Confidence and transparency in the markets by preventing fraudulent transactions.
- Strict sanctions play an important role in preventing similar violations in the future.
- Companies are encouraged to voluntarily cooperate with regulators.
- In innovative areas such as DeFi, technological development can be accelerated by preventing excessive bureaucracy.
While Atkins’ statements on DeFi are welcomed, they do not yet point to a formal policy transformation. In this context, the details need to be clarified and the legal framework needs to be determined in order to put these policies into practice.
Disclaimer
This article is intended for informational purposes only and does not constitute financial, legal, or investment advice. The views expressed reflect regulatory developments as of 2025 and may evolve with future legislation or policy changes. Readers should conduct their own research or consult qualified professionals before making decisions related to DeFi projects, investments, or regulatory compliance. Darkex assumes no responsibility for any financial losses or legal issues arising from actions taken based on this content.
