Inside SEC Crypto Vault Statement's Securities Law Warning

SEC Commissioner Hester M. Peirce issued a statement addressing how the federal securities laws could apply to crypto vaults and on-chain lending strategies, warning that “moving activities that fall within the scope of the federal securities laws onchain, as a general matter, does not take those activities outside the scope of the laws the Commission administers.” Skadden attorneys Alex Drylewski and Daley Epstein discuss the statement's potential securities law implications and why market participants should consider analyzing each layer of a vault or lending strategy separately.