Industry Group Urges SEC to Clarify Securities Laws for Onchain Vaults

CCI, along with members Bitwise, Galaxy Digital and Morpho, is urging the SEC to spell out how current securities laws reach onchain vaults. Its 238-page submission proposes that regulatory oversight vary with the extent to which human operators control users’ assets and influence investment decisions.

Under the proposed framework, operator involvement would help determine how vault activity is overseen. The report centers that assessment on two forms of influence: control over assets and a role in investment decisions.

That approach puts human discretion at the center of CCI’s request for regulatory clarity. The group seeks a differentiated framework linking the SEC’s treatment of vaults to the degree of operator control outlined in the submission. Bitwise, Galaxy Digital and Morpho are among the members involved.

The proposal addresses the application of current securities laws, with operator influence serving as its central measure for tailoring oversight. It presents human control over assets and investment decisions as the basis for differentiating regulatory treatment of onchain vaults.