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DeFi groups argue decentralized lending isn't securities, seek SEC meeting to clarify rules

Market News
03 Nov 2026, 20:04 WIB
Crypto Briefing
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Bullish
DeFi groups argue decentralized lending isn't securities, seek SEC meeting to clarify rules

Aave Labs, Kamino Foundation, and Veda Tech Labs submitted a confidential legal framework to the SEC arguing that decentralized lending protocols and non-custodial vaults do not fall under federal securities laws. They claim users retain ownership and control of their assets, with no promises of repayment, and governance is community-led rather than traditional investment management. This submission, addressed to the SEC's Crypto Task Force, tests these products against four pillars of securities law and concludes they are not securities. While not an SEC ruling, this move could reduce regulatory uncertainty and attract more institutional interest to the $50 billion DeFi lending market if the SEC engages with the argument.

Aave's price on Pluang is Rp2.310.211 with a slight 0.55% decrease in the past day, reflecting cautious trading sentiment. As of Nov 04, 2026 01:22 WIB, the market cap stands at Rp35,45 trillion with active order flow showing 54% selling and 46% buying interest.

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