Solana Policy Institute urges SEC to exclude DeFi developers from broker regulations

The Solana Policy Institute, a non-profit organization focused on blockchain policy, has urged the U.S. Securities and Exchange Commission (SEC) to distinguish between centralized cryptocurrency exchanges and non-custodial decentralized finance (DeFi) software. The institute argued that developers should not be regulated as intermediaries. It called on the SEC to publish guidance that separates non-custodial software tools from broker transactions, amend Rule 3b-16 to exclude open-source code from the definition of an exchange, and adopt a custody and control-based framework to differentiate between intermediary and non-intermediary blockchain activities.