Svmuu News: The U.S. Securities and Exchange Commission (SEC) issued a statement indicating that Vault uses smart contracts to allocate user assets to yield strategies such as staking and lending to help users earn returns, but such management activities may fall under securities regulation.
The statement noted that parties involved in managing Vault—such as those selecting yield strategies, reallocating funds among different yield-generating assets, and selecting managers responsible for investment decisions—must assess whether their activities fall under the jurisdiction of federal securities laws. In addition, entities involved in managing these lending strategies—such as those setting interest rates, determining which assets to support, establishing loan-to-value (LTV) limits, and defining liquidation criteria—must also analyze whether these actions fall under the jurisdiction of federal securities laws.
The statement further notes that on-chain lending strategies may also raise significant securities law issues. For example, depending on the participants’ motivations, the method of product distribution, and other relevant factors, on-chain loans may possess the characteristics of securitized debt instruments (notes).
The statement concludes by inviting comments from market participants on, for example, whether existing rules need to be amended to accommodate Vault, on-chain lending, and other innovations; and how to foster innovation while protecting investors, ensuring the fair, orderly, and efficient operation of the market, and promoting capital formation.