Hester Peirce, a leading member of the U.S.
Securities and Exchange Commission's Crypto Task Force, has issued a statement of clarity arguing that onchain vaults and lending strategies that involve investment contracts — in other words, securities — remain subject to federal regulation.
In a colorfully written blog on Wednesday, Peirce, who is often called "Crypto Mom" for her longstanding support of blockchain financial innovation, said people ought not to do "headstands, backflips, and other gymnastics to read [existing securities] law so that it does not apply to crypto assets and activities that are well within the scope of the federal securities laws." "You will have a painful fall," she said.
Peirce’s comments come after she made proactive statements on the broader category of tokenized securities, arguing then that tokenized securities remain securities.
The agency itself has been working to provide clarity for the emerging category of tokenized assets.
