Paul Atkins, the new chair of the U.S. Securities and Exchange Commission (SEC), has articulated a supportive stance toward decentralized finance (DeFi) and the principle of self-custody in cryptocurrency. Atkins emphasized that the right to self-custody of private digital assets is a foundational American value that should be preserved in the digital realm. He announced that the SEC is developing an "innovation exemption" policy designed to reduce regulatory barriers and foster the growth of on-chain financial products. This exemption aims to provide a formal rule-making framework rather than relying solely on enforcement actions, thereby encouraging innovation within the U.S. crypto sector. Atkins' position also aligns with former President Donald Trump's vision of establishing the United States as a global hub for cryptocurrency innovation. Additionally, SEC crypto lead Hester Peirce highlighted that while developers should not be held liable for misuse of code, centralized entities cannot evade regulatory oversight. The SEC's approach signals a shift toward facilitating DeFi development through regulatory clarity and support for self-custody practices.