CRYPTO IN AMERICA · 2026-11-03 12:53 UTC

Crypto Vaults Expose Industry Divide Over Who Should Be Regulated by the SEC

Crypto Council for Innovation submitted a 238-page report to the SEC arguing crypto vaults should be treated as securities based on the degree of human control and discretion involved. Aave Labs, Veda Tech Labs, and Kamino Foundation countered with their own legal analysis arguing that actively managed vaults and DAO-governed protocols can avoid securities regulation if they don't create traditional investment fund relationships. The dispute highlights disagreement over how decades-old securities laws should apply to decentralized finance protocols and smart contracts.

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