SEC Backs DeFi: Ethereum Gets Regulatory Boost
The U.S. SEC has taken a major pro-DeFi stance, offering long-awaited clarity that strongly benefits Ethereum.
SEC Chair Paul Atkins surprised the crypto world by openly supporting decentralized finance (DeFi) during a recent roundtable. He emphasized that DeFi aligns with American values of economic freedom and innovation, and criticized outdated regulations that stifle blockchain growth. According to him, past actions discouraged U.S. users and builders through legal threats and unclear rules.
In a major shift, Atkins clarified that operating as a validator, miner, or staking service provider does not fall under federal securities laws. He also stated that publishing code for staking or wallets is not the same as acting as a broker. This is a crucial win for Ethereum, the backbone of DeFi, with over $68 billion in total value locked—more than half of the entire DeFi market.
Looking forward, the SEC plans to issue clearer guidance and possibly amend current rules to accommodate on-chain financial systems. Atkins proposed a special "innovation exemption" to fast-track new crypto projects under specific conditions, echoing former President Trump's goal of making the U.S. the top crypto hub globally.
The Ethereum community responded with optimism. Former developer Eric Conner called it a “huge day,” highlighting how the update provides clarity for staking, self-custody, and open-source infrastructure. Despite the positive momentum and an 8% price increase, Ethereum still struggles to break the $2,800 resistance level, remaining in a tight trading range for now.
