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SEC Commissioner Says Open‑Source DeFi Developers Should Not Face Automatic Securities Registration

She argued First Amendment protections and the need for clearer legal boundaries support treating code authors differently from centralized intermediaries.

Overview

  • Commissioner Hester Peirce told a Princeton audience that publishing open‑source blockchain code should not by itself trigger broker, dealer, exchange, or other intermediary registration.
  • Peirce said responsibility for securities law violations should fall on people who commit unlawful acts, not on developers whose publicly released software is later used in trading.
  • She raised constitutional concerns, describing open‑source coding as speech that is generally protected by the First Amendment.
  • Her remarks follow April Division of Trading and Markets staff guidance saying some crypto user interfaces that merely translate user inputs to on‑chain transactions may avoid broker‑dealer registration.
  • The SEC’s Crypto Task Force is continuing a review of how securities laws apply to digital assets and decentralized systems and no formal rule change on developer liability has been announced.