SEC's Hester Peirce warns crypto vaults and lending must follow securities laws, no shortcuts allowed. Market urged to work with SEC for compliant innovation.

🚨 SEC's "Crypto Mom" drops a major reality check for DeFi! Hester Peirce warns that simply moving vaults and lending strategies "onchain" doesn't grant regulatory immunity. If human discretion or curators control yields, LTVs, or staking, it may be a security. Morpho ($MORPHO) already slid 5% on the news. Stop the legal acrobatics, start cooperating. ⚖️ #DeFi #Crypto Regulation #SEC #CryptoNews

The SEC stated that "headstands, backflips, and other gymnastic tricks" in the cryptocurrency space won’t evade the law. The regulator is strengthening oversight and is prepared to hold platforms and projects accountable for circumventing market rules. #bitcoin #cryptocurrency #SEC

SEC Commissioner Hester Peirce stated in her statement that certain activities conducted on-chain lending protocols and vault structures may fall within the SEC’s jurisdiction.

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SEC Peirce warns DeFi vaults face scrutiny Onchain lending strategies also targeted; Morpho fell 5% after regulator statement. > CoinDesk

The SEC has just put one of DeFi's fastest-growing sectors on notice. Commissioner Hester Peirce says crypto vaults and onchain lending strategies could fall under US securities laws depending on how they're structured. The comments sent MORPHO down 5%, as markets priced in the prospect of greater regulatory scrutiny.

⚡️NEW: SEC Commissioner Hester Peirce says crypto vaults and onchain lending strategies could fall under federal securities laws depending on their structure. “Whether a particular vault or lending strategy’s structure and activities are within the scope of the federal securities laws will come down to the specific facts and circumstances,” Peirce said.