The U.S. Securities and Exchange Commission (SEC) has said certain crypto trading interfaces that help users prepare transactions in crypto asset securities may not need to register as broker-dealers, signaling a shift in how the agency views parts of the digital asset market.
In a staff statement issued on April 13 as part of what the agency called “Project Crypto,” the SEC’s Division of Trading and Markets said it would not object if providers of some user interfaces operate without broker-dealer registration, provided they stay within tightly defined limits.
The statement applies to software such as websites, browser extensions, and mobile applications that allow users with self-custodial wallets to prepare and submit crypto-asset securities transactions on blockchain-based systems.
The SEC said those interfaces typically convert a user’s chosen trade details, including asset, size, and price, into commands that can be signed and transmitted through a self-custodial wallet. Some may also display market data, execution routes, and estimated transaction costs.
Boundaries Around What is Allowed
The staff said its position depends on providers keeping a limited role. Users must be able to adjust default transaction settings, and providers cannot solicit investors into specific trades, make investment recommendations, negotiate terms, or take control of customer assets. They also cannot execute or settle trades, arrange financing, process trade documentation, or route orders.
The statement also lays out disclosure and conduct expectations. Providers should use clear and agreed-upon criteria when showing execution routes or market data, avoid calling one path the “best” or “most reliable,” and charge fees that are fixed, consistent, and not linked to a specific product, venue, or counterparty. They are also expected to maintain policies for vetting connected venues, managing conflicts, and protecting user trading information.
Where an interface is linked to a trading venue operated by the same provider or an affiliate, that relationship must be clearly disclosed, the SEC staff said.
Interim Relief, not a Final Rule
The SEC framed the guidance as an interim measure while it continues weighing broader regulatory questions around crypto asset securities. Unless the Commission takes further action, the staff statement will automatically be withdrawn five years after April 13, 2026.
The document is not a formal Commission rule and is limited to the staff’s view of how Section 15 of the Securities Exchange Act applies to a narrow category of providers. Still, it offers a clearer pathway for developers of self-custody trading tools that have long operated in a legal grey area.
More Clarity for Wallets and DeFi Builders
The move could reduce regulatory pressure on certain interface providers by offering clearer boundaries around when broker-dealer registration may not apply. It may also encourage developers to build wallet and trading interfaces with more confidence, as long as those tools remain limited to user-directed functions rather than custody, discretion, or promotion of individual transactions.
