SEC latest statement: How should DeFi vaults and on-chain lending be regulated?

Core logic: Moving coin activity on-chain doesn’t mean you can do whatever you want.
Key points in plain language:
Not all crypto projects fall under SEC jurisdiction (a clear statute is still in progress). But as long as the essence of your business appears to be a security (such as helping people manage their money, on-chain lending, or pool management), even if you wrap it in the shell of smart contracts, you still can’t evade securities laws. It’s better to proactively talk to the SEC about compliance (to avoid getting hit with fines later).
One-sentence summary of the SEC’s stance:
If you really can’t be controlled by a boss the way Bitcoin is, then I can’t regulate you; but if your people can call the shots or skim a cut, then you have to file with me.
For DeFi developers, whether your smart contracts include an Admin Key (administrator privileges) and whether there is human-chosen strategy selection will become the key factors for the SEC to determine whether you’re a “security/investment product.”