SEC Commissioner Peirce Says Crypto Vaults and Onchain Lending May Fall Under Securities Laws

According to SEC Commissioner Hester Peirce on Wednesday, crypto vaults and onchain lending products may fall under U.S. securities laws if they involve discretionary asset management, such as allocating assets, selecting yield strategies, setting lending terms, or determining liquidation thresholds.

Peirce stated in an official statement that some vaults could be treated as securities offerings or investment companies, while parties managing vault allocations or lending parameters could trigger investment adviser requirements. She urged developers and operators to consult the SEC if their products may fall within its jurisdiction and invited feedback on how existing rules could better accommodate onchain finance.