SEC's 'Crypto Mom' Peirce Warns Onchain Vaults and Lending May Trigger Securities Laws
SEC Commissioner Hester Peirce has issued a statement regarding onchain vaults and lending strategies, warning that they may fall under U.S. federal securities laws depending on their structure and management.
In her statement titled 'Headstands and Summervaults: A Statement on Crypto Vaults and Lending Strategies,' Peirce emphasized the importance of active management in determining whether these activities implicate securities laws.
She noted that parties managing vaults by selecting yield-generating activities or setting interest rates may want to analyze whether their activities fall within the scope of federal securities laws.
Pierce laid out several ways the laws could attach, including a common enterprise where users invest money with a reasonable expectation of profits, and investment company territory where assets are held or allocated.