SEC Commissioner Hester Peirce Says Blockchain and DeFi Code Is Open-Source Software, Not Securities

The U.S. Securities and Exchange Commission has long applied securities laws to crypto-asset activities. Commissioner Hester Peirce, however, argues that blockchain and DeFi developers are generally publishing open-source software—an act of expression protected by the U.S. Constitution—and should not automatically be treated as securities intermediaries merely because others use their code.

At a June 9, 2025, DeFi roundtable hosted by the SEC’s Crypto Task Force, Peirce said regulation should target those who actually control assets, solicit transactions or commit fraud, rather than neutral protocols and underlying code. Her remarks outlined a policy position; the SEC announced no new rules, penalties or amounts at issue.