The U.S. Securities and Exchange Commission (SEC) announced on Monday that certain cryptocurrency user interfaces may bypass broker-dealer registration requirements if they meet specific operational criteria.
The agency's Division of Trading and Emoluments released a staff statement clarifying that the SEC "will not object" to providers of certain interfaces operating without formal registration under specific circumstances.
These interfaces, referred to as "covered user interfaces," include websites, software applications, or browser extensions that may be embedded in self-custodial wallets. They facilitate user-initiated transactions on blockchain protocols and smart contracts.
Regulatory boundaries for self-custody
The SEC noted that the statement serves as an interim measure. "The Staff is providing its views as an interim step while the Commission continues to consider various regulatory issues relating to crypto asset securities and the feedback it has received," the agency stated.
To avoid registration, the SEC outlined that providers must avoid certain behaviors, such as soliciting investors or influencing users toward specific execution routes. The guidance focuses on interfaces that allow users to interact with blockchain networks using their own self-custodial wallets.
This move follows a series of recent clarifications from the agency. Previous statements by the SEC have indicated that memecoins and most stablecoins do not qualify as securities.
This shift in tone contrasts with the previous regulatory approach under former Chair Gary Gensler. The industry had previously criticized the agency's reliance on enforcement actions rather than clear, prospective rulemaking to govern digital asset activities.
