SEC carves out path for some crypto interfaces to bypass broker registration

The U.S. Securities and Exchange Commission (SEC) has issued a staff statement from its Division of Trading and Markets, offering a potential pathway for certain crypto user interfaces to avoid registering as broker-dealers. This statement, which is not a formal rule, aims to clarify the application of federal securities laws to activities involving crypto asset securities. It defines a "covered user interface" as a website, application, or browser extension that facilitates user-initiated crypto asset securities transactions using self-custodial wallets. The SEC outlined specific conditions under which it would not object to a provider operating such an interface without registration, including not soliciting investors, not influencing users' execution route choices with phrases like "best price," and having procedures to analyze trading venues. This move is part of the SEC's ongoing efforts to provide clarity on digital assets, following previous statements on memecoins and stablecoins, and represents a shift from past approaches that often classified cryptocurrencies as securities.

(Source：The Block)