Sec Carves Out Broker Exemption For Self-Custody Crypto Interfaces

The SEC's Division of Trading and Markets has released new staff guidance allowing certain user-facing crypto trading interfaces to operate without registering as broker-dealers.

The exemption applies to "covered user interfaces," meaning websites, apps, and browser tools that help users prepare and transmit crypto asset securities transactions through self-custodial wallets. To qualify, providers must stay neutral, avoid recommending trades, and leave users in full control of price, size, and execution.

Fees must be fixed and unrelated to trade outcomes, and interfaces cannot label routes as "best" or "preferred." The guidance also bars any discretionary influence over how market data or transactions are presented.

The statement is not a binding rule, but reflects staff interpretation of existing law and will remain in effect for five years. It does not cover platforms that custody funds, execute trades, or give investment advice.