SEC Commissioner Hester Peirce has published a statement on crypto yield vaults and onchain lending. She stressed that these products differ in design, so their legal treatment depends on their actual functions and management structure rather than their name or use of blockchain technology.

Regulatory questions may arise for operators that select yield strategies, reallocate assets, set interest rates, choose supported collateral, establish loan-to-value limits or define liquidation thresholds. Some structures could resemble investment companies, managed accounts, advisory services or securities.

The statement does not introduce a new ban or classify every vault as a regulated product. The SEC is asking market participants to assess each model separately and discuss possible compliant paths where necessary. The practical conclusion for developers is clear: the more decisions a manager or curator controls, the harder it becomes to describe the product as fully automatic and neutral software.