Bloomberg Law
Sept. 8, 2021, 11:00 PM

What’s ‘Yield Farming’ and Why Is the SEC Frowning?: QuickTake

Olga Kharif
Olga Kharif
Bloomberg News

Yield farming is a cryptocurrency investment strategy that holds out the hope of bigger returns than most conventional investments are offering these days. It could be a chance for the bold to win big -- or for the holders of new currencies to manipulate prices. The U.S. Securities and Exchange Commission has put the industry on notice that it has reservations, in particular over whether the practice should be regulated as a securities offering.

1. What is yield farming?

When you deposit money in a bank, you’re effectively making a loan, for which you get interest in return. Yield farming ...

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