SEC's Hester Peirce Says On-Chain Crypto Activity May Still Fall Under Securities Laws

SEC Commissioner Hester Peirce said that moving crypto assets on-chain does not automatically exclude related activity from federal securities laws. According to Odaily, she said crypto vaults and lending strategies that use smart contracts to allocate assets for yield may be treated as a common enterprise, an investment company, or a security, if specific individuals or teams decide staking and lending allocations, interest rates, acceptable assets, loan-to-value ratios, and liquidation thresholds. Peirce said participants should review whether the activity triggers securities offering or investment adviser requirements. She added that industry participants are welcome to discuss compliance paths with the SEC and submit views on how current rules could be adjusted to accommodate vaults and on-chain lending.