"The U.S. Securities and Exchange Commission has issued new staff guidance indicating that certain user-facing interfaces involved in crypto securities trading may not be required to register as broker-dealers, provided they meet a strict set of conditions designed to limit discretion, influence, and conflicts of interest."
"To remain outside broker-dealer registration, interface providers must adhere to several conditions. These include refraining from recommending specific trades, avoiding solicitation of particular transactions, and ensuring users retain full control over trade parameters such as price, size, and execution preferences."
"The guidance applies specifically to 'covered user interfaces,' which include software products that help users prepare and transmit crypto asset securities transactions through self-custodial wallets."
The U.S. Securities and Exchange Commission has provided guidance indicating that certain user-facing interfaces for crypto securities trading may qualify for exemption from broker-dealer registration. These interfaces, termed 'covered user interfaces,' must function as neutral tools without exercising discretion or influence over trades. Providers must avoid recommending trades, soliciting transactions, and ensure users maintain control over trade parameters. The SEC previously clarified that most digital assets are not securities, leaving only 'digital securities' under traditional regulation.
Read at Bitcoin Magazine
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