The U.S. Securities and Exchange Commission said certain crypto user interfaces may operate without broker-dealer registration if they meet a narrow set of conditions. The statement came Monday from the Division of Trading and Markets as part of Project Crypto, which is intended to clarify how federal securities rules apply to digital asset activity. It applies to “covered user interfaces,” including websites, mobile apps, and browser-based tools linked to self-custodial wallets that help users prepare and send transactions involving crypto asset securities on blockchain systems.
Neutral design is central to the SEC position
The staff said interface providers must remain neutral. They cannot recommend trades or steer users toward particular execution choices. Users must retain control over all core trading decisions, including price and size. Platforms also cannot describe routing options with language such as “best price”. Transaction routing must rely on objective criteria that are disclosed in advance, and the SEC said it would not object where those conditions are met.
Fee schedules and conflicts must be clearly disclosed
The guidance sets detailed disclosure expectations for operators. Providers need to explain their fees, any conflicts of interest, and any ties to trading venues. Fee arrangements must stay fixed and cannot depend on trading outcomes. The SEC also limited how interfaces may present market data: they cannot elevate routes based on editorial choice or financial incentives. Instead, users should be able to sort options through neutral measures such as speed or price.
Venue reviews and default settings face ongoing scrutiny
The staff said providers must continue evaluating connected trading venues using consistent standards. Those reviews should cover liquidity, security, and transparency. Default settings on the interface must also follow objective criteria and be reviewed on a regular basis. The SEC added that the statement is not a binding rule. It reflects current staff views under the Securities Exchange Act of 1934, and the framework is set to remain in place for five years unless it is updated sooner.
The relief is temporary and narrowly scoped
The SEC drew a clear boundary around the exemption. It does not cover firms that execute trades, hold customer assets in custody, or provide investment advice. Platforms carrying out those functions must still register as broker-dealers. In practice, the statement creates limited room for neutral interface tools, while leaving registration requirements in place for execution, custody, and advisory services.