Bankless · Wednesday, July 29, 2026
SEC Commissioner Hester Peirce recently commented that some crypto vaults might be considered investment companies and lending strategies could create securities. Paul Frambot views these statements as thoughtful, acknowledging the spectrum of vault types and lending protocol agencies, and encourages engagement with regulators.
“Yeah, so first I wasn't surprised. I actually, last week, I spent the entire week in Washington meeting multiple times with the SEC, with the CFTC, with the different senators and staffers, etc. We're in like close contact with all of those regulators.”
“I think generally... I'm thankful of the thoughtfulness that goes into, I don't know if you've read the full post, but it seems very reasonable to me. Like when you read it, you're like, hey, some of those vaults may be investment companies, right? And there's a bunch of vaults stack out there. There's a bunch of different types of vaults. And some of them are fully non-custodial, like fully immutable, where you can't change the risk parameters within the bounds of a time block. And some others are frankly just Fireblocks wallets.”
“She said this line about vaults, This description is purposefully broad and generic. As with many new developments in crypto, this term does not have a specific, widely understood definition. And only someone who's been paying attention to crypto for like five plus years would be able to like have that realization that sometimes we come up with words and the word itself is just like over purposefully broad and generic.”