According to Crypto in America, the Crypto Innovation Council (CCI), along with Bitwise, Galaxy Digital, Morpho, and other members, submitted a 238-page report to the U.S. Securities and Exchange Commission (SEC), recommending that the degree of actual control the operator has over investor assets be a key criterion for determining whether on-chain vaults are subject to securities laws. The report argues that the greater the operator's discretion in investment choices, lending terms, and fund flows, the stronger the grounds for securities regulation. For vaults that meet the definition of investment companies, the CCI recommends that the SEC follow the ETF regulatory approach, granting exemptions on a case-by-case basis before considering broader rules; it also suggests clarifying when vault operators must register as investment advisors and the custody rules for assets managed by smart contracts. These are industry recommendations, and it remains unclear whether the SEC will adopt them. [https://www.(wublock123.com)/news/crypto-innovation-committee-submits-report-to-sec-recommend-onchain-vaults-regulation-70964]