New Regulatory Perspectives on DeFi Vaults: Aave and Morpho Camps Clash
The Aave and Morpho camps disagree over whether vaults in DeFi lending markets are securities. Aave Labs and others argue that decentralized lending protocols are not subject to securities laws, while the Crypto Council for Innovation believes vaults qualify as securities when managers have sufficiently broad authority. The two filings agree on overcollateralized lending, but the dispute over vault managers’ authority to rebalance assets remains unresolved. #DeFi #New Regulatory Trends
The Aave and Morpho camps disagree over whether vaults in DeFi lending markets are securities. Aave Labs and others argue that decentralized lending protocols are not subject to securities laws, while the Crypto Council for Innovation believes vaults qualify as securities when managers have sufficiently broad authority. The two filings agree on overcollateralized lending, but the dispute over vault managers’ authority to rebalance assets remains unresolved. #DeFi #New Regulatory Trends