🚨 SEC vault debate is escalating: CCI + Bitwise + Galaxy + Morpho filed a 238-page report arguing that how much discretion/control human managers have over vault strategies is a key factor in whether crypto vaults are securities. Aave Labs + Veda Tech Labs + Kamino Foundation push back: active management alone shouldn’t automatically trigger securities law if users retain asset rights and there’s no legal “common enterprise” or issuer. Both sides agree on one thing: paid investment advice involving securities may still fall under the Investment Advisers Act. The bigger question for the SEC: where does DeFi software end and a regulated investment product begin? 👀 #DeFi #SEC #CryptoPolicy #Web3