SEC’s Peirce says crypto vaults and onchain lending may fall under securities laws
SEC Commissioner Hester Peirce warned that crypto vaults and onchain lending products may be subject to U.S. securities laws, depending on how they are designed and operated. Products that let managers make discretionary decisions—such as allocating assets, choosing yield strategies, setting lending terms, or defining liquidation thresholds—could be treated as securities offerings, investment companies, or involve investment adviser obligations. She also said some onchain loans may qualify as securities based on their structure, distribution, and use. Peirce stressed that moving activity onchain does not remove it from SEC oversight. She urged developers and operators to evaluate regulatory risk, consult the SEC when needed, and provide feedback on how existing rules could better fit onchain finance.
