Aave Labs, Veda, and Kamino submitted a summary of a legal framework for decentralized lending and non-custodial vaults to the SEC.
The trio argue that the mere fact that someone participates in a vault’s strategy does not automatically make it a security. Users retaining the right to redeem their assets, and curators being unable to withdraw them, are key design features in their argument. If paid investment advice involves securities, advisers may still be subject to legal obligations.
This is the industry’s position. The SEC has neither ruled on nor approved it. For retail users, one thing to watch first: who can move your assets, and whether they can withdraw them unilaterally.
$AAVE $ETH $SOL
The trio argue that the mere fact that someone participates in a vault’s strategy does not automatically make it a security. Users retaining the right to redeem their assets, and curators being unable to withdraw them, are key design features in their argument. If paid investment advice involves securities, advisers may still be subject to legal obligations.
This is the industry’s position. The SEC has neither ruled on nor approved it. For retail users, one thing to watch first: who can move your assets, and whether they can withdraw them unilaterally.
$AAVE $ETH $SOL