SEC Commissioner Hester Peirce told a Princeton audience Tuesday that publishing open-source blockchain software is a protected activity under the First Amendment, and developers who release DeFi code shouldn't automatically be treated as securities intermediaries. The remarks, delivered at the IC3 Blockchain Camp, are the latest sign of a regulatory rethink under the new SEC leadership.
Code as speech
Peirce argued that securities rules should not apply to blockchains themselves, noting the technology is used for many purposes beyond securities transactions. She questioned whether existing rules designed for brokers, dealers, and exchanges make sense when applied to distributed networks. Publishing code, she said, is not the same as acting as a financial intermediary.
The commissioner has long pushed for clearer crypto rules and is central to the agency's current effort to define how securities laws apply to digital assets.
A shifting SEC
Under Chair Paul Atkins, the SEC has been pulling back from regulation by enforcement. The agency's Crypto Task Force is reviewing how existing statutes cover decentralized systems. SEC staff guidance this year said some front-end websites and software platforms that provide access to decentralized protocols may not qualify as brokers under traditional legal definitions.
The SEC's draft Strategic Plan through fiscal 2030 describes blockchain and crypto assets as technologies with potential to reshape America's financial infrastructure. That language marks a tonal shift from the previous administration's approach.
What developers are watching
Peirce's speech doesn't change the law overnight. But it signals that the agency is actively reconsidering whether to treat open-source code publication as a regulated activity. The Crypto Task Force's review is ongoing, and industry participants are watching for formal guidance or rulemaking that would codify the distinction between code authors and intermediaries.
For now, the question remains: If publishing smart contract code isn't brokerage, where does the SEC draw the line?
