United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that cryptocurrency vaults and certain on-chain lending strategies may be subject to federal securities laws. According to her, the regulatory classification will depend on how each product is structured and operated, regardless of the use of blockchain technology.
Known in the market as "Crypto Mom," Peirce highlighted that the SEC published guidance recently to clarify which activities involving cryptocurrencies remain outside the scope of federal securities laws. Even so, she emphasized that several blockchain-based financial products remain under the jurisdiction of the regulatory agency.
The commissioner explained that the use of blockchain, smart contracts, or automated processes does not, by itself, alter the legal nature of a financial service. In her view, companies developing solutions for the sector should structure their products in compliance with current legislation, rather than considering that the technology offers an exception to existing rules.
Addressing so-called cryptocurrency vaults, Peirce noted that these structures can be used to generate yield through staking, lending, or other automated strategies. Depending on how they operate, these products may be classified as investment contracts or even as investment companies, if they involve the managerial efforts of third parties or meet the criteria set forth under United States law.
She also drew attention to on-chain lending platforms. According to the commissioner, some arrangements may be considered securities, especially when they have characteristics similar to those of traditional financial products or involve professional management of the resources deposited by users.
Another point highlighted was that the regulatory analysis should not follow a single rule for all projects. According to Peirce, each case needs to be evaluated individually, taking into account its structure, operation, and the limits of the SEC's legal authority. She added that this process must also preserve the freedom of expression of the developers responsible for creating the protocols.
The commissioner's statement reinforces the SEC's position that technological innovation does not automatically eliminate existing legal obligations. For the agency, the classification of a product will continue to be based on its economic and legal characteristics, and not only on the infrastructure used for its operation.
Peirce also encouraged companies, developers, and participants in the cryptocurrency market to maintain dialogue with the SEC during the development of new products. According to her, the regulator is willing to discuss possible updates to the rules to accommodate innovation, provided that the changes preserve investor protection, the integrity of financial markets, and capital formation in the United States.