SEC Commissioner Peirce Clarifies That Crypto Vaults and On-Chain Lending Remain Subject to Federal Securities Law

According to Foresight News, SEC Commissioner Hester Peirce issued a statement clarifying that moving securities-regulated crypto activities on-chain does not exempt them from federal securities law. Peirce noted that vault products vary in design, ranging from fully immutable smart contract-controlled asset distribution to discretionary management by specific individuals or groups. Market participants involved in managing vaults or on-chain lending strategies—including those selecting yield-generating activities, adjusting allocations, setting interest rates, determining accepted asset types, and establishing liquidation thresholds—must assess whether their activities trigger federal securities law obligations.
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