Interpretations of the Bolt Securities Act diverge… CCI and Abelabs differ on Morpho's side

Aave Labs, Kamino Foundation, and Veda Tech Labs submitted a legal analysis to the SEC on October 26 arguing that decentralized lending protocols and non-custodial vaults should not automatically fall under U.S. securities law, while the Crypto Council for Innovation (CCI) filed a competing "Under Control" report on October 29 taking a different interpretive stance. The dispute centers on how much control a curator exercises over asset allocation and user returns after deposits, a factor that could determine whether a vault qualifies as a security. The split matters because it leaves unresolved how broadly U.S. securities rules apply to DeFi vault products at a time when regulators are weighing framework guidance for the sector. What to watch next is whether the SEC signals which interpretation it favors, and whether other DeFi protocols and vault curators line up behind either the Aave-led group or the CCI position.