Post by Augustine Chiagozie (@pabloexchange)

⚖️ SEC's Peirce warns DeFi vaults may be securities

Hester Peirce — the SEC commissioner known as "Crypto Mom" — has put DeFi builders on notice: onchain vaults, lending products and other asset management tools may fall under US securities laws depending on how they're structured and operated.

Peirce's statement flags that certain onchain vaults and lending strategies could resemble investment funds or investment advisers in the eyes of regulators. Her warning to builders who try to work around the rules was blunt: "You will have a painful fall."

The statement signals that the SEC's softer stance on crypto doesn't mean DeFi yield platforms get a free pass — structure and operation still determine whether securities law applies.

⚖️ SEC's Peirce warns DeFi vaults may be securities Hester Peirce — the SEC commissioner known as "...

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