So, here's the scoop on DeFi regulation:
- The SEC is looking to introduce this "innovation exemption" for DeFi platforms, which could help get rid of some of those annoying regulatory barriers.
- They've recognized the need to tweak their rules so that blockchain issuers and intermediaries get some breathing room.
- Also, developers of DeFi software shouldn't be held accountable for how people use their tools.
- Their past methods really hurt innovation, especially when they claimed that developers could be seen as brokers.
On the whole self-custody thing:
- The SEC is all about self-custody being a "core American principle," which is pretty cool.
- They're aiming to give crypto investors more freedom to manage their own tokens.
What's changing with the SEC's approach:
- We're seeing a major shift in how the SEC talks about and interacts with crypto.
- They're throwing shade on using "old-school regulatory systems" on fresh tech.
- Basically, they’re saying, "Don’t fear the future."
- They're also setting up a dedicated crypto task force and hosting roundtables about different crypto topics.
- Plus, with Republicans in charge, there might be more crypto-friendly moves coming down the pipeline.
Reads all positive! If SEC really changes their tone and approach towards the crypto industry, it will be a blessing in real sense. While I agree it's a fresh new approach, I believe this policy is at a draft stage and not finalized yet. So we will need to see what the future has in store.
If SEC really practice such policy in reality, the overall crypto industry may see the next boom. But being lenient should not encourage the group of scammers entering into this market and bring in crape in the name of innovation. We have seen that enough!
In theory, the SEC's new approach to regulating the cryptocurrency industry sounds great and covers all the troubling aspects of the previous approach, but we'll have to wait for its practical implementation.
I'm particularly struck by two provisions:
This seems specifically aimed at responding to the Tornado Cash case, which is a positive thing because the SEC's previous approach stifled innovation.
Another interesting point:
This is a very impressive provision if implemented, and it guarantees the Bitcoin and cryptocurrency community's right to store their assets in non-custodial wallets to which they hold the private keys.
That is what the crypto industry and its developers endured during the last administration, to such an extent that developers of self custodial wallets, i.e. Samourai wallet, were arrested and indicted. It is about time such attacks stopped, so the crypto industry can progress, that of course does not mean creators of shitcoins and memecoins with the aim of scamming people should be allowed to freely do so.
New policy does not mean law.
Whether such policy will become law or not, legal practice will show us. As lawyers say in my country: "Practice is the criterion of truth"
So far I see that projects related to privacy, anonymity are not very popular with regulators and court cases continue.
SEC and NYSE are developing an approach to regulating crypto.
"On June 24, 2025, Crypto Task Force Staff met with representatives from New York Stock Exchange,
Inc.
The topic discussed was approaches to addressing issues related to regulation of crypto assets. New York
Stock Exchange, Inc. representatives provided the attached document, which was discussed during the
meeting."
https://www.sec.gov/files/ctf-memo-nyse-062425.pdf