SEC Commissioner Argues DeFi Code Publication Protected by Free Speech

US Securities and Exchange Commission (SEC) Commissioner Hester Peirce has weighed in on a longstanding debate over developer liability in decentralized finance (DeFi).

In a recent speech, Peirce argued that publishing open-source code for DeFi projects should not subject developers to federal securities regulations. This stance is part of the SEC's broader shift towards clearer crypto regulations.

According to Peirce, decentralized protocols can operate without traditional intermediaries, and responsibility for securities law violations should generally rest with individuals who engage in unlawful conduct.