After years of navigating murky legal waters, the decentralized finance (DeFi) space is finally seeing the kind of regulatory clarity it’s long demanded.
The Clarity Act
House Republicans have reintroduced the CLARITY Act with meaningful changes that could reshape how developers are treated under U.S. law. Most notably, the bill now shields non-custodial and non-controlling developers from being lumped in with money transmitters. In plain English: if you write code, run a node, or build wallets but don’t touch users’ funds, you’re probably safe.
The change is significant. Developers from Tornado Cash to Samourai Wallet have faced prosecution simply for publishing code or enabling self-custody. The revised bill aims to make that a thing of the past. Of course, the devil is in the definitions “non-controlling” is likely to spark debate, but it’s a much-needed start.
SEC and CFTC: Playing Nice for a Change
On June 9, the SEC and CFTC issued a joint statement: The message was simple: they’re working together (finally) to define clear rules for digital assets.
Institutional players took notice. The uptick in trading volumes and renewed confidence in platforms like Coinbase reflect a market that’s been starved for regulatory coordination. For now, the mood is cautious optimism … with a side of bullishness.
Atkins Era: Less Lawsuit, More Liberty
New SEC Chair Paul Atkins has added fuel to the DeFi fire, in a good way. Calling self-custody a “foundational American value,” he’s publicly criticized past enforcement-led approaches under Gary Gensler. The SEC, under Atkins, is now dropping headline cases (Coinbase, Ripple) and warming up to developer protections.
With the SEC’s crypto task force wrapping its spring roundtable series, and the leadership at both financial regulators in flux, 2025 may be remembered as the year crypto got a real seat at the grown-up table.
Regulatory clarity is essential for fostering innovation in decentralized finance, while protecting investors and ensuring market integrity.
Paul S. Atkins, Chairman, SEC
Between Congress, the SEC, and the CFTC, the mood in Washington has shifted from “crackdown” to “collaboration.” Sure, nothing is final yet: definitions, exemptions, and agency turf battles remain. But if DeFi has felt confusing and risky, there’s finally some real direction coming into view.