SEC Reviews DeFi Lending Models in Talks With Term Finance
The SEC Crypto Task Force met with DeFi firm Term Finance to discuss how decentralized lending fits within current rules.
They reviewed token classification under the Howey and Reves tests and debated how retail participation, secondary markets, and interfaces could influence regulation. Term Finance outlined its overcollateralized lending model, using smart contracts, decentralized oracles, and real-time audits to align with investor protection. The firm also showed interest in working with regulators through sandboxes and ongoing reviews.
Led by Commissioner Hester Peirce, the task force continues industry outreach via roundtables and public consultations. With a privacy-focused roundtable set for October 17, the discussions point toward DeFi lending potentially complementing traditional markets if clear rules emerge.
Clever Robot News Desk 22th September 2025
