SEC Commissioner Hester Peirce has asserted that publishing open-source code for decentralized finance (DeFi) projects is protected under the First Amendment as free speech. Peirce emphasized that such publication should not automatically subject developers to securities regulations. She highlighted that many blockchain projects release open-source software, which is generally safeguarded by free speech rights.
Peirce cautioned against applying traditional financial regulations, designed for centralized entities, to decentralized blockchain networks. She noted that the SEC's regulatory framework includes numerous intermediary concepts, such as brokers and exchanges, which may not be applicable to blockchain infrastructure. Peirce argued that decentralized protocols can operate without traditional intermediaries, and liability for securities violations should rest with individuals engaging in illegal activities.
SEC's Hester Peirce: DeFi Code Publication Protected by Free Speech
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