Aave submits DeFi lending and vault framework to SEC crypto task force

Aave Labs and co-authors submitted a legal framework to the SEC’s Crypto Task Force and Division of Corporation Finance arguing that well-designed decentralized lending protocols and non-custodial vaults should not be treated as securities under the Howey and Reves tests. The proposal emphasizes user control, transparent governance and the absence of a centralized party financing an enterprise.