- SEC staff will not object to crypto interface providers operating without broker registration.
- Exemption disappears the moment a provider holds or manages user funds or assets.
- Providers must disclose fees conflicts of interest, cybersecurity, policies and MEV risks fully.
The SEC’s Division of Trading and Markets published a staff statement on April 13 that gives crypto user interface providers a clear path to operate without registering as broker-dealers, provided they follow a specific set of conditions. The guidance is part of the Commission’s ongoing Project Crypto initiative and represents one of the most concrete regulatory clarifications the SEC has issued for DeFi-adjacent infrastructure.
The statement addresses what the SEC calls Covered User Interfaces, the browser extensions, mobile apps and wallet-embedded tools that help users prepare and submit crypto transactions on blockchain protocols.
The SEC staff stated the statement is part of “an effort to provide greater clarity on the application of the federal securities laws to activities involving crypto asset securities.”
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What the SEC Is Saying
Under securities law, anyone who effects transactions in securities for others could be required to register as a broker-dealer. The new guidance says the SEC staff will not pursue broker-dealer registration requirements against interface providers if they meet a defined list of conditions. Requirements include:
- Users must be able to customise any default transaction settings.
- Providers cannot solicit users into specific transactions.
- Fee structures must be fixed, transparent and not influenced by which route or venue is selected.
- Affiliated trading venues must be clearly disclosed and treated the same as unaffiliated ones.
- Providers cannot hold, access or manage user funds at any point.
- Full disclosure of conflicts of interest, cybersecurity policies and MEV-related risks is required.
The guidance is explicitly temporary. It will be considered withdrawn five years from April 13, 2026, unless the Commission takes further action before then.
Why It Matters
For years, DeFi interface builders have operated in genuine legal uncertainty about whether their tools triggered broker-dealer obligations. The SEC has now drawn a line, by indirectly saying ‘stay within these boundaries and the staff will not object’.
The statement also signals the SEC’s broader direction under Project Crypto. Rather than silence or enforcement, the Commission appears to be working toward a framework that acknowledges how crypto infrastructure actually functions.
The guidance is open for public comments.
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