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Morpho's plan to classify DeFi vaults faces criticism over regulatory and custodial definitions.

Market News
24 Sep 2026
Crypto Briefing
View Source
Neutral
Morpho's plan to classify DeFi vaults faces criticism over regulatory and custodial definitions.

Morpho CEO Paul Frambot proposed dividing onchain vaults into 'non-custodial' and 'discretionary' categories based on curator control, aiming to clarify regulatory treatment. Critics like Aave founder Stani Kulechov and attorney Gabriel Shapiro argue this misrepresents 'non-custodial' vaults, which ideally have no managerial oversight, and may serve Morpho's competitive interests. The debate impacts regulatory compliance and user access, especially given Morpho's $16 billion in deposits and partnerships with major platforms like Robinhood and Coinbase. How vaults are classified could affect custody rules and investor protections in DeFi moving forward.

Morpho's CEO Paul Frambot and his vault classification proposal provide context for readers. As of Sep 25, 2026 04:21 WIB, out of 50 major cryptocurrencies tradable on Pluang, 45 rose and 4 fell. Notable price changes include FIL at Rp17.891 with an 8.72% increase and a typical hold time of 99 days, CRV at Rp6.288 up 8.47%, and EOS at Rp12.649 up 8.13%.

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