SEC Commissioner Hester Peirce said on July 22 that crypto vaults and onchain lending strategies can fall under U.S. federal securities laws depending on how they are structured and managed. She emphasized that active management is the key trigger: parties selecting yield-generating activities, reallocating assets, or setting interest rates may need to analyze whether their activities implicate securities laws. This statement reflects her own view, not a rule or official Commission position. The MORPHO token dropped as much as 6.85% on the news before recovering and gaining 6.5% Thursday at noon ET. Peirce concluded by encouraging market participants to provide feedback to the SEC on whether existing rules should be updated.
Source: Read the original article
