The Solana Policy Institute has taken a significant step in advocating for the decentralized finance (DeFi) sector by addressing regulatory concerns with the SEC. Their recent letter emphasizes the need for clear distinctions in the treatment of crypto exchanges and DeFi software, aiming to foster innovation in the blockchain space. Based on the data provided in the document, this initiative could pave the way for more favorable regulations that support the growth of DeFi.
Solana Policy Institute Urges SEC to Differentiate Crypto Exchanges
In a letter sent to the U.S. Securities and Exchange Commission (SEC) on Friday, the Solana Policy Institute, a nonprofit dedicated to blockchain policy, urged the regulatory body to differentiate between centralized crypto exchanges and non-custodial DeFi software. The institute argued that developers of non-custodial code should not be classified as intermediaries, as their role is fundamentally different from that of entities controlling user funds.
Call for Guidance and Regulatory Amendments
The letter further called for the SEC to provide guidance on how to distinguish between non-custodial software tools and traditional exchanges that operate with brokers. Additionally, the institute recommended amending existing regulations to exclude open-source code from the definition of exchanges. This initiative is aimed at protecting DeFi developers and promoting a more innovative environment within the U.S. cryptocurrency market.
The decentralized finance (DeFi) sector continues to show promise, even as the Solana Policy Institute advocates for clearer regulations. For more insights on the growth potential of DeFi, read more.
