Crypto Innovation Council Urges SEC to Weigh Operator Control

The Crypto Innovation Council (CCI), joined by Bitwise, Galaxy Digital and Morpho, is urging the Securities and Exchange Commission to weigh onchain vault operators’ actual control over investor assets when applying securities laws. In a 238-page report submitted to the SEC, CCI argues that operator discretion is central to the analysis. The council points to decisions about investments, lending terms and fund movements, saying greater operator freedom in those areas strengthens the case for securities oversight. For vaults that meet the definition of investment companies, CCI recommends case-by-case exemptions before broader rules are considered.