SEC Commissioner Hester Peirce warned that some crypto vaults and onchain lending strategies may fall under federal securities laws depending on their structure. She emphasized that blockchain technology does not automatically remove financial products from existing regulations.
The commissioner noted that certain crypto vaults operate through immutable smart contracts, while others involve managers making investment decisions. These managerial functions could trigger securities law obligations and place products within the scope of investment company or investment adviser regulations.
Peirce also mentioned that some onchain loans may display characteristics commonly associated with securities under federal law. She emphasized that every product requires a facts-and-circumstances analysis instead of a blanket classification, stating that not every crypto vault or lending strategy will automatically qualify as a security.