# SEC Comments On DeFi Vaults and Onchain Lending

> SEC warns crypto vaults and onchain lending strategies may be subject to federal securities law.

**Published by:** [ETH Daily News](https://ethdaily.io/)
**Published on:** 2026-07-23
**Categories:** sec, regulation, defi, securities, vaults, lending
**URL:** https://ethdaily.io/sec-comments-on-defi-vaults-and-onchain-lending

## Content

SEC Commissioner Hester Peirce published a statement warning that crypto vaults and onchain lending strategies may be subject to federal securities law, and that participants should not assume moving activities onchain takes them outside regulatory scope. Vaults are smart contracts that allocate user assets to yield-generating activities including staking and lending. The SEC claims vaults could constitute a common enterprise akin to investment advisers. Peirce also says lending strategies could also involve notes that qualify as securities regardless of the underlying assets. Peirce advised parties involved in selecting yield-generating activities, reallocating assets, setting interest rates, determining loan-to-value limits, or establishing liquidation thresholds should analyze whether their activities implicate securities law. The statement is notable coming from Peirce, historically one of the most crypto-friendly commissioners at the SEC. Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created.

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