Atkins suggests crypto vaults may qualify as investment contracts under the Howey test.
“A vault, for example, could be a common enterprise in which users invest money with a reasonable expectation of profits to be derived from the vault deployer’s and curator’s entrepreneurial or managerial efforts.”
Atkins invites industry input on modifying SEC rules to accommodate vaults and onchain lending innovations.
“We welcome your thoughts on whether we need to modify our rules to accommodate vaults, onchain lending, or other innovations and how we can do so while still ensuring that investors are protected, markets are fair, orderly, and efficient, and capital formation is facilitated.”
Atkins describes vaults as spanning from fully automated smart contracts to discretionary human management.
“They fall along a spectrum from programmatic allocations determined solely by immutable smart contracts, to allocations at the sole discretion of another person or group of persons.”
Atkins states vaults holding securities may trigger Investment Company Act registration requirements.
“A vault that holds securities or allocates assets to investments in securities could fall into investment company territory.”