Crypto mom Hester Peirce warns DeFi vaults may be securities under SEC rules

SEC Commissioner Hester Peirce stated that DeFi vaults and onchain lending may be securities under US federal securities laws.

Crypto vaults automatically manage user funds to generate returns, and onchain lending lets users lend crypto for interest, resembling investment contracts.

Peirce's comments signal possible SEC scrutiny and new compliance rules for crypto firms offering these products.

SEC is still collecting industry feedback, and the legal status of many DeFi products has not been finalized.