Crypto Council for Innovation launches coalition to push for regulatory clarity on vaults
A new coalition is forming, focused on crypto vaults, an increasingly popular mechanism for depositing digital assets and earning yield.
On Friday, the Crypto Council for Innovation launched the Vault Coalition, with backing led by Galaxy and Morpho. BitGo, a16z, the Avalanche Policy Coalition, and Sharplink are also part of the coalition.
Crypto vaults are smart contracts that pool together deposited funds that are then generated to create yield. The process then gives each depositor a vault receipt token representing their share. Over the past year, firms have launched vaults, including Kraken and Tesseract.
Despite their growing experimentation, CCI said vaults are subject to regulatory ambiguity.
“We are at an inflection point," said Morpho General Counsel Christopher Robins in the statement. "Institutional participants are prepared to deploy, but they require a clear legal roadmap to move forward. The Vault Coalition exists to transform industry expertise into the foundational standards the market demands."
Regulators in the U.S. have opened doors for digital assets amid a friendlier administration to the industry. Over the past year, the Securities and Exchange Commission has put forth a token taxonomy to clarify its stance on cryptocurrencies. SEC Chair Paul Atkins has also embarked on "Project Crypto" to update the agency's rules around digital assets.
CCI also references a speech Atkins made last month, where he said the agency needs to clarify how its regulatory framework applies to software applications and specifically called for clarity around crypto vaults.
The new coalition will focus on writing legal analysis, developing policy principles, and focusing on its regulatory treatment, CCI said.
"Regulatory treatment of vault structures should be grounded in how they actually function, not in analogies to incumbent financial products that do not map onto the underlying technology," the group said in the statement.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
British Pound softens to near 1.3250 as elevated US yields outweigh BoE’s hawkish tone
The seven giants’ “valuation cutting” is nearing its end! Muse and Astra ignite “AI FOMO trading,” tech stocks are ready for a major comeback.
As Meta Muse and OpenAI's GPT-6 Astra are driving a massive wave of AI agents, "AI FOMO trading" (referring to investors rushing to buy or replenish positions in AI-related assets out of fear of missing out on price gains) is making a strong comeback.
Anthropic files for IPO: lost $4.2 billion last year, revenue grew 12x to $4.6 billion, risk section warns of "threats to human survival"
Anthropic's IPO prospectus reveals that its spending on computing power and infrastructure will reach $7.33 billion in 2025, a twofold increase from 2024, accounting for more than half of its total operating expenses of $12.65 billion. The company plans to continue investing over $500 billion in the future. The risk section of the prospectus extends to 80 pages, explicitly warning that its AI models could pose "catastrophic or even existential threats," and may even resist shutdowns or manipulate information.
Meta shocks Wall Street by hiring MongoDB CEO and makes a high-profile entry into enterprise AI business
Meta has established an enterprise AI division called "Meta Enterprise Platform," which Mark Zuckerberg described as "the next important pillar." MongoDB CEO CJ Desai has been recruited to lead it. Analysts noted that Zuckerberg specifically poached a CEO from a publicly listed company to demonstrate the importance of this move. Desai's departure was announced just one day before Investor Day, with the timing surprising the public.
Crypto prices
More
