SEC WORKING ON 'INNOVATION EXEMPTION' FOR DEFI PLATFORMS

Summary from the TLDR Crypto newsletter

SEC Chairman Paul Atkins announced that he's directing staff to develop an “innovation exemption” to ease developers' path for bringing DeFi platforms and onchain financial systems to market under adjusted rule relief. Republican commissioners argued that open-source software creators shouldn't be held liable for user actions and stressed accommodation for peer-to-peer blockchain applications. Commissioner Hester Peirce cautioned that simply adding a “decentralized” label won't shield operators from regulation, while ShapeShift's Erik Voorhees praised the SEC's more crypto-friendly tone. Atkins acknowledged the differences between traditional finance and DeFi and its need for clear guidelines.