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SEC Commissioner Peirce warns some DeFi vaults may be securities
Peirce said vaults and onchain lending strategies could fall under federal securities laws depending on structure, after comments moved Morpho’s token about 5% lower.
SEC Commissioner Hester Peirce warned that some DeFi vaults and onchain lending strategies may fall within federal securities laws, depending on how the products are structured and managed, CoinDesk reported.
Peirce said blockchain-based delivery does not automatically change legal status, adding that “tokenized securities are still securities” and that the principle would apply to vaults. She cautioned against “gymnastics” to avoid securities-law coverage for activities that are otherwise within scope.
The remarks sparked market reaction, with Morpho’s token falling roughly 5% after the statement, while the broader crypto market moved differently.
The DeFi vault sector has expanded quickly, with Vaults.fyi telling CoinDesk there were $8.6 billion in assets across 788 curated vaults as of July, reaching 1.4 million users. Peirce noted vault designs range from fully automated smart contracts to products where curators choose strategies, rebalance assets, or manage deployments.