SEC Commissioner Hester Peirce, the agency’s most crypto-friendly voice, said DeFi vaults and onchain lending can qualify as securities depending on how they are managed.
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Posted July 23, 2026 at 6:26 am EST.
Hester Peirce, the SEC commissioner known as “Crypto Mom” for her pro-industry stance, has issued a warning to one of decentralized finance’s fastest-growing sectors.
Peirce said in a statement on Wednesday that crypto vaults and onchain lending strategies can fall within the reach of federal securities laws, depending on how they are structured and managed.
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The statement builds on a statement Peirce released last year when she said tokenized securities are still securities: moving a financial activity onto a blockchain does not, by itself, remove it from the law. Vaults that involve discretionary decisions, such as allocating user assets, selecting yield strategies, setting interest rates, or determining liquidation thresholds, may amount to securities offerings or investment companies, she said. The parties managing them could face investment adviser obligations.
Peirce said any determination comes down to specific facts and circumstances, and that fully autonomous, non-discretionary systems are less likely to trigger scrutiny. She also stressed respect for the limits of the SEC’s authority and for developers’ free speech rights, and she invited vault operators to approach the agency to find a compliant path. The statement is guidance, not an enforcement action, but it puts the sector on notice.
Morpho, one of the largest providers of vault infrastructure, saw its token fall over 7%, underperforming the broader crypto market. Vaults have become one of DeFi’s fastest-growing products with firms including Coinbase and Robinhood integrating them to offer yield on user balances. Kraken launched a Bitcoin vault in May that routes deposits through lending protocols including Aave and Morpho.
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AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
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