Turning Point for DeFi: SEC Embraces Self-Custody of Digital Assets

The head of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, has announced a new stance regarding non-custodial cryptocurrency storage, labeling this right as a «fundamental American value.»

This announcement was made on June 6 during the final roundtable of a cryptocurrency task force titled «DeFi and the American Spirit,» marking a shift away from the policies of the previous administration.

Changpeng Zhao, the founder of Binance, emphasized that June 6 will be remembered as a significant day for decentralized finance.

Atkins expressed his support for allowing market participants more flexibility in managing their crypto assets independently. He pointed out that this is particularly crucial when intermediary services impose «unnecessary fees» or restrict participation in staking and other on-chain activities.

Since Donald Trump took office and the departure of former SEC chairman Gary Gensler, the commission has adopted a more favorable attitude towards the crypto industry. Since the beginning of the year, the SEC has closed investigations involving Coinbase, Robinhood, Ripple, Kraken, ConsenSys, Cumberland, Nova Labs, and Uniswap.

The commission has also established a cryptocurrency task force, which in recent months has conducted five roundtable discussions focusing on tokenization, custody, trading, and the definition of securities.

Atkins criticized the previous regulatory approach, stating that it hindered innovation in self-custody by equating developers with brokers and requiring compliance with SEC regulations.

“I do not believe we should allow outdated regulatory frameworks to stifle innovation. These technologies have the potential to transform and, crucially, enhance our traditional intermediary model. We should not fear the future,” he emphasized.

The SEC chair also mentioned that he has tasked Commission staff with determining the next steps, specifically whether new guidelines or rules can enable registered organizations to interact legally with software systems designed for self-custody of assets.

In May, the SEC clarified that under certain conditions, staking does not violate U.S. securities laws.

Later, Atkins reiterated that oversight of industry participants «will be conducted through notices and comments, rather than through enforcement regulation.»