SEC Commissioner Calls for Clearer Lines Between Code Developers and Securities Intermediaries

SEC Commissioner Hester Peirce has emphasized the importance of distinguishing between code developers and securities intermediaries. In a recent speech, she argued that releasing open-source blockchain code should not be subject to federal securities regulations. According to Peirce, this is because decentralized protocols can operate without traditional intermediaries.

Pierce's views are in line with the SEC's current direction, which focuses on regulation rather than enforcement. The Commission has been exploring how to apply existing securities laws to digital assets and decentralized systems.

The Commissioner also highlighted that liability for violations of securities laws should rest with individuals who engage in wrongful acts, not with code publishers. This would alleviate legal burdens on American blockchain developers.