Howey Test stories

Nov 3, 2026

Aave Labs, Kamino and Veda submit DeFi lending framework to SEC

Three DeFi protocols jointly submitted a legal framework to the SEC arguing that decentralized lending protocols and non-custodial vaults fall outside federal securities laws, requesting a meeting with SEC staff to discuss the position.

Nov 3, 20262 sources

Top claims

▪The Aave, Kamino, and Veda legal framework paper submitted to the SEC highlights that mandatory public notice and time delays for DAO governance changes allow users to withdraw assets before new protocol rules take effect
▪Aave restricted tBTC lending after Threshold suspended redemptions
▪Aave Labs, Kamino, and Veda argue that users depositing crypto or borrowing against collateral in DeFi lending protocols do not enter securities arrangements under the Howey test, Reves, the Investment Company Act, or the Investment Advisers Act

Subtopics

Crypto regulation1 DAOs & governance1 DeFi1 DeFi lending1 DeFi regulation1 Federal agencies1 Regulatory advocacy1 SEC Crypto Task Force1 Securities vs. commodities1

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