SEC Warns Vault and On-Chain Lending May Fall Under Securities Regulation

The U.S. Securities and Exchange Commission issued a statement warning that Vault management and on-chain lending strategies may be subject to federal securities law oversight. According to the SEC statement, parties managing Vaults—such as those selecting yield strategies, reallocating funds between assets, or designating investment decision-makers—must assess whether their activities trigger securities regulations. Similarly, entities managing on-chain lending, including setting interest rates, selecting supported assets, defining loan-to-value (LTV) limits, and establishing liquidation standards, should evaluate compliance requirements. The SEC added that on-chain lending could potentially constitute securities offerings depending on participant incentives, product distribution methods, and other relevant factors.
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