Aave, Kamino, Veda Pitch DeFi Lending Framework to SEC

Aave Labs, Kamino Foundation and Veda Tech Labs Inc. submitted a confidential legal framework to the US Securities and Exchange Commission on October 26, 2026, according to Crypto Briefing. The outlet reports the submission was addressed to the SEC's Crypto Task Force and the Division of Corporation Finance, and that the groups have requested a meeting with staff to discuss it.

The framework examines two product categories, decentralized lending protocols and non-custodial vaults, and tests them against four areas of US securities law: the Howey test, Reves analysis, the Investment Company Act of 1940, and the Investment Advisers Act, Crypto Briefing reports. The groups argue these products are not investment contracts, fall outside Reves analysis, and do not create advisory relationships that would trigger custody rules, per the outlet. Aave Labs is also cited as stressing that the protocols make no repayment promises and that decisions run through transparent, community-led governance.

Crypto Briefing frames the joint filing as a sector-wide position rather than a single-protocol request, noting that by October 2026 more than $50 billion in digital assets was reportedly tied to products the framework addresses. The outlet also notes a separate SEC probe into the Aave protocol that began around 2021 concluded in December 2025 without an enforcement recommendation.

It remains unconfirmed whether the SEC will engage with the framework's reasoning, grant the requested meeting, or whether other lending protocols will submit similar arguments. The full contents of the confidential submission have not been made public.