SEC's Peirce: Crypto Vaults, Onchain Lending May Be Securities

Vaults designed to generate yield through staking or lending may constitute securities or investment companies if they involve managerial efforts or investments covered by federal securities laws, Peirce said. Onchain lending arrangements may qualify as securities in certain circumstances and could raise investment adviser or investment company issues.

Peirce said any regulatory analysis must rest on the specific facts of each case while respecting the limits of the SEC's statutory authority. She also said the agency should safeguard developers' free speech rights.

The commissioner encouraged industry participants to engage with the SEC during product development. She said the agency is open to considering regulatory updates that support innovation while protecting investors and maintaining fair and orderly markets.