Woofun AI reports that SEC Commissioner Hester Peirce stated crypto vaults and on-chain lending strategies may be subject to federal securities laws. She emphasized that migrating regulated activities on-chain does not grant exemption from securities regulations. Peirce noted that vault designs vary, ranging from immutable smart contracts to human-controlled allocations. All parties managing these strategies must evaluate if their actions trigger securities law obligations. The SEC welcomes proactive communication to explore compliance and is seeking input on rule revisions for such innovations.