🇺🇸 SEC Commissioner Warns Crypto Vaults and On Chain Lending May Fall Under Securities Laws

SEC Commissioner Hester Peirce has warned that simply moving crypto assets on chain does not automatically exempt them from U.S. federal securities laws.
• Crypto vaults and on chain lending strategies could fall under securities regulations depending on how they are structured.
• If a team determines staking strategies, lending allocations, interest rates, accepted collateral, LTV ratios, or liquidation thresholds, the arrangement may be considered a common enterprise, investment company, or securitized note.
• Projects may need to assess whether they are subject to securities offering, investment adviser, or other regulatory requirements.
• Peirce encouraged crypto builders to engage with the SEC and provide feedback on how existing regulations can better accommodate decentralized vaults and on-chain lending.
The statement signals continued regulatory scrutiny of DeFi products, with the SEC emphasizing that economic substance, not just blockchain technology, will determine whether federal securities laws apply
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