DeFi in Focus as SEC Convenes Key Crypto Regulation Roundtable

The US Securities and Exchange Commission (SEC) will host a pivotal roundtable, “DeFi and the American Spirit,” on 9 June at its Washington, D.C. headquarters.

This event, the fifth in a series organised by the SEC’s Crypto Task Force under Commissioner Hester Peirce, aims to explore the evolving decentralised finance (DeFi) landscape and the future of its regulation.

SEC Chair Paul Atkins is also scheduled to provide opening remarks.

Designed to foster public engagement, the roundtable will welcome both in-person attendees and a live webcast audience to gather diverse perspectives from industry leaders, developers, legal experts, and regulators.

Discussions will center on how DeFi platforms can align with existing legal frameworks, with a focus on key issues such as smart contracts, token governance, and the operation of automated systems without central intermediaries.

The SEC intends to evaluate whether current financial regulations adequately address blockchain-based applications or if new approaches are needed.

A critical theme will be finding the right balance between protecting investors and encouraging innovation, especially in areas where regulatory clarity is lacking.

Commissioner Peirce has emphasized the importance of “open dialogue” as the foundation for navigating these complex challenges.

During a recent briefing, she noted:

“We want to engage with developers and users to better understand their models and concerns.”

Panel to Tackle Challenges Around Tokenised Assets and Custody Rules

The upcoming discussions are expected to center on the SEC’s approach to regulating tokenised real-world assets, as increasing numbers of companies bridge blockchain technology with tangible goods.

Key topics will include crypto custody, fraud prevention, and ensuring market integrity.

In prior crypto roundtables, the SEC has examined how digital tokens are classified as securities, sparking debate over the legal responsibilities of platforms that facilitate token trading and custody.

Atkins emphasized the agency’s commitment to “provide clarity” and craft policies that reduce market uncertainty.

Atkins stated during his recent address to the Senate Appropriations Subcommittee:

“This Task Force will work quickly to provide guidance where it is most needed.”

He also highlighted that, despite maintaining a budget request of $2.149 billion, the SEC is enhancing efficiency through strategic workforce adjustments.

Regulators Look to Industry Feedback for Policy Direction

The SEC’s outreach to companies and individuals signals a shift toward collaborative market engagement.

Firms like VanEck and SegMint have begun engaging with the Commission, with SegMint recently scheduling a presentation on their NFT fractionalisation service, which offers NFTs backed by luxury watches and trading cards.

This initiative involves issuing digital certificates tied to physical assets, enabling fractional ownership.

SegMint is actively assessing how federal securities laws apply to these offerings and exploring potential exemptions.

The roundtable follows a recent meeting between BlackRock and the SEC’s Crypto Task Force focused on crypto trading and compliance, underscoring the growing influence of major financial institutions in shaping the future regulatory landscape.