Aave and other institutions differ from CCI on regulatory boundaries for crypto vaults

On November 3 that, according to legal analyses released by institutions such as Aave Labs, there are differing views within the crypto industry on whether US securities laws apply to non-custodial vaults.

In a report submitted to the U.S. Securities and Exchange Commission (SEC), Aave Labs, Kamino Foundation, and Veda Tech Labs argued that under the specific structures analyzed, even if vault strategies are actively selected by managers, this does not necessarily constitute an investment pool or an investment company.

By contrast, the framework proposed by the Crypto Council for Innovation (CCI) alongside members such as Bitwise, Galaxy, and Morpho emphasizes the degree of control individuals exert over investment decisions and assets. Institutions including Aave also noted that vault managers who provide compensated investment advice for securities may still be subject to the Investment Advisers Act; their conclusions depend on specific designs and rights arrangements, and do not constitute regulatory determinations by the SEC.