SEC Clears Crypto Wallet Interfaces From Broker Registration Rules

The SEC listed the conditions under which it will not object to such an interface operating without broker-dealer registration.

Crypto News

The U.S. Securities and Exchange Commission has

a staff statement clarifying that certain software interfaces used to transact with self-hosted crypto wallets may not need to register as broker-dealers. The Division of Trading and Markets published the statement on Monday as part of a wider effort to provide interim guidance on digital assets. The statement does not carry the force of a formal rule.

The agency defined a covered user interface as a website, software application, or browser extension that allows users to initiate crypto asset securities transactions on blockchain protocols or smart contracts through their own self-custodial wallets. Interfaces embedded in wallets fall under the same definition.

The SEC listed the conditions under which it will not object to such an interface operating without broker-dealer registration. The provider must not solicit users to engage in specific transactions. It must not describe any execution route using language such as "best price." It must also maintain policies and procedures to evaluate trading venues.