According to CoinMeta, the Innovation Crypto Committee, in conjunction with members such as Bitwise, Galaxy Digital, and Morpho, submitted a 238-page report to the U.S. Securities and Exchange Commission (SEC). The report recommends implementing differentiated regulation for on-chain vaults based on the extent of control operators have over users' assets and investment decisions. It suggests that vaults that automatically execute lending strategies according to fixed rules should be subject to different standards from products that allow operators to independently select targets, adjust terms, and reallocate funds. Furthermore, CCI advises SEC to follow the approach outlined in ETF, initially approving exemptions on a case-by-case basis before formulating unified rules depending on industry circumstances.