Woofun AI reports that SEC Commissioner Hester Peirce stated tokenizing crypto assets on-chain does not automatically exempt related activities from federal securities laws. She noted that crypto vaults and lending strategies using smart contracts to generate returns, where specific individuals determine staking, lending allocation, interest rates, acceptable assets, LTV ratios, and liquidation thresholds, may be classified as common enterprises, investment companies, or securitized notes. Peirce advised relevant participants to evaluate whether they are triggering regulatory requirements for securities offerings or investment advisors. She further indicated that industry participants are welcome to engage with the SEC regarding compliance pathways and provide input on adjusting existing rules to accommodate vaults and on-chain lending.