Peirce says some crypto lending faces rules

• SEC Commissioner Hester Peirce said some crypto vaults and lending products may fall under securities laws.
• The comments show US regulators are still reviewing decentralised finance products.
• Peirce said each product should be assessed under existing securities laws.

SEC Commissioner Hester Peirce said some crypto vaults and on-chain lending products may be regulated under US securities laws, depending on how they operate.

Her comments came as the US Securities and Exchange Commission continues reviewing decentralised finance products and existing regulations.

"If you're creating something that looks like a security, it may well be a security," said SEC Commissioner Hester Peirce.

Peirce said developers should consider whether users rely on others to generate returns when designing crypto products.

Peirce said each product should be assessed individually under existing laws, while there was no share price reaction because the comments did not involve a listed company.

Crypto vaults allow users to deposit digital assets to earn returns, while on-chain lending lets users borrow and lend through smart contracts.

Peirce has repeatedly called for clearer cryptocurrency rules while supporting the use of existing securities laws where they apply.