- SEC Commissioner Hester Peirce warns that crypto vaults and lending protocols, even when on-chain, may be subject to federal securities laws.
- She highlighted that actively managed vaults and lending platforms that resemble security-style notes could trigger registration and investment adviser obligations.
- Peirce encouraged compliant collaboration with the SEC but cautioned against attempts to circumvent existing regulations, emphasizing investor protection.
Topics: Legal regulatory, Integration with defi, Institutional adoption, Securities law classification, Rwa collateral lending, Onboarding prime brokerage
Tags: #hesterpeirce #sec #cryptovaults #lendingprotocols #securitieslaw #investmentcontract #defi #smartcontracts #investorprotection #regulatorycompliance