Custody is one of the most important open questions for crypto in traditional finance, and it's one we've been working through for the last six months. The @SECGov 's proposal is a prime opportunity to get the rules right and ensure they are rooted in investor protection and control. We're excited to engage further.

"Vaults are like Baskin Robbins, there are lots of different flavors. " The @Morpho team will continue our efforts to push for regulatory clarity. Thanks to the @CahillNXT team for inviting me to Confluence 2026.

CLARITY was the culmination of nearly a decade of crypto legislative and policy efforts. This is just a speed bump. Our industry's broader regulatory efforts continue. The US still has several paths to provide meaningful clarity for crypto. Whether it's through @SECGov and @CFTC rulemaking, future legislation, or both, it’s clear there is no slowing down. A durable US framework should include strong protections for developers, recognition that (when done right) DeFi protocols are infrastructure rather than intermediaries, and rules capable of achieving equivalence with other jurisdictions. Getting that framework right is the ultimate goal, and we here at @Morpho will continue to dedicate our time, energy, and resources to ensuring we achieve this goal.

Virtually every custody failure in this industry takes the same shape. The exit ran through someone, and one day that someone said no. @Morpho vaults remove that someone. Users can redeem in kind, even if a vault is illiquid. Curators direct allocation, never the exit.

EU: Drop everything, the MiCA consultation review is here. SEC: Drop everything, 400 pages of Regulation Crypto are here. Commissioner Peirce: Some of you are doing "headstands and summervaults" to dodge securities laws. Me: Just a chill guy trusting smart contracts . . .

Today, @Morpho signs its first major partnership in Hong Kong with @HashKeyGroup and @HSKChain 🇭🇰 This is significant because: 1/ HashKey becomes our anchor partner in one of the world’s most important capital markets. This is proof that onchain credit infrastructure is ready to expand via licensed, institutional rails in APAC. 2/ Compliance and permissionless infrastructure complement each other: Morpho's infrastructure enables HashKey to build KYC, wallet screening and access controls on top to meet local regulatory requirements. 3/ Hong Kong is a strategic entry to APAC: with its regulatory trajectory and institutional appetite, HashKey’s integration of Morpho is a strong pilot for how the next chapter of onchain finance gets built in the region. 先行者，往往要承担更多的不确定性。走在前面，从来都不容易。但总要有人先迈出这一步。 今天很荣幸，与Hashkey一起，迈出了第一步。

Opposing the Clarity Act because digital assets have been used for fraud is shortsighted and intellectually dishonest. Every medium of exchange (e.g. cash, checks, wires, ACH, and credit cards) has been used for fraud. What stops fraud is giving law enforcement the tools, resources, and legal clarity to go after criminals. I say this as someone who has worked directly with local law enforcement, Secret Service, FBI, and DOJ to go after criminals. The Clarity Act contains explicit mandates designed to combat financial crime, strengthen anti-money laundering enforcement, and enhance law enforcement collaboration. Section 201 — BSA & Sanctions Compliance for Digital Commodity Entities: Formally brings digital commodity brokers, dealers, and exchanges under the Bank Secrecy Act (BSA) and OFAC sanctions rules. Entities must build formal AML/CFT programs, designate compliance officers, conduct independent audits, and file Suspicious Activity Reports (SARs) with FinCEN. Section 202 — Risk-Based Examination Standards: Mandates that Treasury and federal regulators establish tailored, risk-based examination standards to audit the adequacy of reporting obligations, customer verification, and AML/CFT programs across registered entities. Section 203 — Public-Private Information Sharing Pilot (Preventing Illicit Finance Through Partnership Act): Authorizes a formal 5-year pilot program for federal agencies (DOJ, FBI, DEA, Treasury, FinCEN, IRS-CI, OFAC, Secret Service, and DHS) to share live threat intelligence directly with designated private sector entities. This creates explicit safe harbor protections for platforms assisting law enforcement in freezing and seizing illicit funds in real time. Section 204 — Independent Financial Technology Working Group to Combat Terrorism & Illicit Finance: Establishes an interagency working group (Treasury, DOJ, FBI, Secret Service, DHS, ODNI, and blockchain intelligence firms) to track, analyze, and report annually on illicit usage by foreign terrorist organizations, state sponsors of terrorism, and transnational criminal syndicates. Section 205 — Crypto Kiosk / ATM Regulation: Directly targets kiosk-based scams and consumer fraud by mandating operational registration, transaction limits, and a dedicated, rapid-response contact point specifically for law enforcement investigations. Section 305 — Temporary Holds Safe Harbor: Explicitly allows exchanges and digital asset service providers to place short temporary holds on suspicious transactions, including upon receipt of a formal written request from law enforcement, without fear of private civil liability. Section 302 & Section 401 — SEC & CFTC Anti-Fraud Enforcement: Explicitly grants/preserves market manipulation and anti-fraud enforcement powers for both the CFTC (over digital commodity spot markets) and the SEC (over registered digital asset platforms and permitted payment stablecoins). Section 308 — Preservation of State Anti-Fraud Authority: Clarifies that nothing in the federal market structure preempts or limits state securities regulators or attorneys general from prosecuting fraud within their jurisdictions.

Over the last week, our small but mighty @Morpho team met with nearly a dozen Senate offices to talk about the Clarity Act. The message we heard in every meeting was "we're trying to get to yes." That's encouraging, because the Clarity Act is a massive opportunity for the US to lead on the regulation of digital asset markets, and its a massive improvement over the status quo. Here's what the status quo actually looks like: 1️⃣ The industry lacks oversight. A lack of regulatory clarity favors bad actors, who take advantage of the uncertainty to exploit consumers. If we don't move now, we're leaving the door open to more bad actors. 2️⃣ The industry lacks transparency. Without mandated disclosures and listing standards, consumers are regularly exposed to scams and frauds. 3️⃣ The industry lacks standards. Without standards around decentralization and control, consumers are exposed to unknown risks when using blockchain networks. Is the bill perfect? No. But no bill is perfect, and we can't let perfection be the enemy of progress. The @BlockchainAssn launched which is a website that helps companies, constituents, and voters urge Senate leadership to bring the Clarity Act to the floor. Let's get this across the line!

As Commissioner @HesterPeirce notes, "the promise [of vaults] will only be realized... if we grapple now with the intersection between these asset deployment tools and the federal securities laws." This is why @crypto_council launched the Vault Coalition. Earlier this week, CCI and our Vault Coalition anchor members @galaxyhq @Morpho and @Bitwise met with SEC staff to begin that dialogue. We appreciate the opportunity to engage and look forward to continuing the conversation.

Morpho Association has raised $175M to build the open credit network for the world. Co-led by @paradigm, @a16zcrypto, @RibbitCapital with strategic participation from @apolloglobal, @vaneck_us, @circle_ventures, and @Ledger @Cathayinnov. The round also included participation from @variantfund, @wmt_ventures, @preludexyz, @IOSGVC, @HashKey_Capital, @sbigroup, @Bpifrance, @mirana, @bamazizimesh, NJJ Capital and 10+ other strategic partners. The funding will help accelerate Morpho's position as the foundation for onchain credit.

Bitcoin Vault on @krakenfx, powered by Morpho Kraken is expanding its noncustodial yield offerings to $BTC, via a @SentoraHQ curated @veda_labs vault leveraging Morpho's open credit network.

Check our the recent article in @Forbes by @CharlesLBovaird on the potential impact of the Fed’s decisions on Bitcoin and risk assets. Markets are anticipating a third rate cut in 2025, which could create a favorable environment for institutional buyers. Read more:

Bitcoin just passed $92K. I spoke with @CharlesLBovaird at @Forbes about why Vanguard ETFs, Solana allocations, and BofA guidance are driving this institutional momentum. Thanks @CharlesLBovaird and @Forbes for covering this shift in digital assets. Read more: