SEC’s Peirce Flags Securities Risk for Crypto Yield Vaults and Onchain Lending
The growing use of automated yield strategies on blockchains like Ethereum and Solana faces a defining legal test after SEC Commissioner Hester Peirce signalled that some crypto vaults and onchain lending products may trigger US securities laws. The statement, detailed in a market update from WuBlockchain, is not a formal enforcement action but offers a window into how the regulator is thinking about the trillion-dollar DeFi sector.