SEC Issues Guidance on User Interfaces for Crypto Asset Securities

The U.S. Securities and Exchange Commission (SEC) has released a staff statement from its Division of Trading and Markets, offering guidance on whether certain user interfaces used to generate crypto asset securities trading instructions need to register as brokers. According to Odaily, the statement clarifies that under specific conditions, providers of such interfaces may not need to register as broker-dealers under Section 15 of the Securities Exchange Act. These conditions include not actively soliciting specific transactions, not providing investment advice, not controlling or executing trades, and generating trading instructions based solely on objective parameters while fully disclosing fee structures, potential conflicts of interest, and associated risks to users. The SEC emphasized that these interfaces typically exist as websites, browser plugins, or wallet applications, converting user-set trading parameters into on-chain executable instructions and providing market data such as prices, paths, and fees. However, the exemption does not apply to activities involving trade matching, custody of funds, order routing, or providing investment advice. The guidance is provisional and, without further action, will automatically expire five years from April 13, 2026. The SEC stated that this move aims to provide a clearer regulatory framework for activities related to crypto asset securities and continues to seek market feedback.