Crypto vaults and onchain lending strategies may fall under US securities laws depending on how they are structured, SEC Commissioner Hester Peirce said in a Wednesday statement.
Peirce, widely known as “Crypto Mom,” said recent SEC guidance has clarified that many crypto assets and activities are not subject to federal securities laws, but stressed that others remain within the agency’s jurisdiction.
She cautioned that moving financial products onchain does not exempt them from securities regulations and encouraged firms to seek compliant paths instead of attempting to bypass securities laws.
Applying that principle to crypto vaults, Peirce said that tokenizing or automating financial services does not exempt them from existing regulations.
Peirce noted that vaults designed to generate yield through staking or lending may constitute securities or investment companies if they involve managerial efforts or investments covered by federal securities laws.
She added that onchain lending arrangements may qualify as securities in certain circumstances and could raise investment adviser or investment company issues.
Peirce said any regulatory analysis must be based on the specific facts of each case while respecting the limits of the SEC’s statutory authority and safeguarding developers’ free speech rights.
The commissioner encouraged industry participants to engage with the SEC during product development and said the agency is open to considering regulatory updates that enable innovation while continuing to protect investors, maintain fair and orderly markets, and support capital formation.
