SEC’s Peirce says crypto vaults and onchain lending may fall under securities laws
The SEC commissioner said crypto vaults, onchain lending products and other asset management tools may trigger US securities laws depending on how they are structured and operated.
SEC Commissioner Hester Peirce said crypto vaults and onchain lending products may fall under US securities laws, urging developers to assess whether products that actively manage user assets require regulatory compliance.
In a statement published Wednesday, Peirce said crypto vaults and lending strategies that involve discretionary decisions, including allocating assets, selecting yield-generating activities, setting lending terms and determining liquidation thresholds, may fall within the scope of federal securities laws depending on their structure and operation.
She said some vaults could be treated as securities offerings or investment companies, while parties managing vault allocations or lending parameters could also trigger investment adviser requirements.
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