SEC’s Peirce warns crypto vaults, onchain lending may fall under securities laws

Hester Peirce from the SEC has issued a warning regarding the legal status of crypto vaults and decentralized lending products. She stated that these onchain lending mechanisms are not automatically exempt from federal securities laws. The alert emphasizes that certain DeFi vaults may still fall under the regulatory jurisdiction of the SEC, regardless of their decentralized nature, potentially subjecting these specific financial instruments to existing securities legislation and oversight within the United States.