India, July 22 -- SEC Commissioner Hester Peirce, also known as "Crypto Mom," has said that crypto vaults and onchain lending strategies may come under US federal securities laws. Peirce's remarks have started a fresh debate on how decentralized finance (DeFi) products should be treated under US law, according to the SEC Commissioner's statements.

Peirce has long asked the US Securities and Exchange Commission (SEC) to give clear rules for cryptocurrencies and digital assets. She explained her overall approach to crypto regulation in a February statement called "The Journey Begins". Her latest comments expand that discussion to DeFi products that help users earn returns, according to Peirce's regulatory views.

A crypto vault is a tool t...