SEC Commissioner Hester Peirce said some crypto vaults and onchain lending strategies may fall under federal securities laws depending on their structure.
In a statement on Wednesday, Peirce cautioned that moving activities onto blockchain does not exempt them from existing rules. “Tokenized securities are still securities,” she said. “That principle holds for vaults.”
She added that attempts to reinterpret the law through “headstands, backflips and other gymnastics” to avoid securities regulations would lead to problems. Vaults allow users to deposit crypto into smart contracts for yield, with some managed by curators.
As of July, 788 curated vaults held $8.6 billion in assets. One provider, Morpho, saw its token drop about 5 percent after the remarks.
Peirce urged developers to consult the SEC rather than assume blockchain technology places them outside its reach.
