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Five-Year Exemption Window: SEC Officially Eases Restrictions on Crypto Asset Securities Trading Interfaces

The U.S. SEC’s Division of Trading and Markets has issued a staff statement providing a five-year exemption from broker-dealer registration for certain crypto asset securities trading interfaces, effective until April 13, 2031. The guidance clarifies that front-end interfaces—such as DeFi platforms, browser extensions, and self-custody wallet integrations—are not considered brokers if they solely act as neutral tools that translate user trading parameters into executable on-chain instructions and provide market data (e.g., gas fees, execution routes), without engaging in order execution, custody, or transaction facilitation. To qualify, these “Covered user interfaces” must adhere to 12 strict conditions centered on neutrality, transparency, and user control. Key requirements include: - Strict neutrality: no promotion of specific securities or execution paths; only objective, verifiable data display. - No payment for order flow or third-party compensation; only fixed, uniform fees permitted. - Full disclosure of conflicts, operational policies, and clear statements that the interface is not SEC-registered. The statement explicitly prohibits interfaces from negotiating terms, offering investment advice, handling user assets, or routing orders. This move aims to separate technical front-ends from financial intermediation, pushing the industry toward compliant, non-custodial, and transparent operations while addressing risks like MEV through enhanced user awareness.

marsbitAyer 07:25

Five-Year Exemption Window: SEC Officially Eases Restrictions on Crypto Asset Securities Trading Interfaces

marsbitAyer 07:25

U.S. Tax Collection Reaches Wallet Exchanges from 6 Years Ago? Four-Layer Breakdown of the IRS's New Form

The U.S. IRS has introduced a new audit form requiring taxpayers to disclose all digital asset platforms, wallets, and services used, including exchanges like Coinbase, Binance, and defunct entities like FTX, as well as self-custody wallets such as MetaMask and Ledger. This form, part of a broader tax enforcement strategy, mandates detailed account information and transaction history, with penalties for false declarations under perjury laws. This move is not sudden but results from years of regulatory evolution, starting with the 2017 John Doe subpoena to Coinbase, which compelled the exchange to share user data. The 2021 Infrastructure Investment and Jobs Act further classified crypto exchanges as "brokers," requiring them to report user data via Form 1099-DA starting in 2025. The IRS employs a four-layer data approach: exchange reports, traditional financial records, blockchain analysis, and audit questionnaires. While centralized exchanges remain key data sources due to KYC requirements, the focus may shift to on-chain protocols like Hyperliquid, where transactions are transparent but identity linkage is weaker. The IRS typically audits up to three years prior, extendable to six for significant underreporting. High-risk groups include those who reported minimal crypto activity despite acknowledging it, discrepancies in 1099-DA forms, and high-frequency traders during the 2017-2021 bull market. Tax professionals advise consulting experts before responding to audits. Globally, tax authorities like the UK's HMRC and Australia's ATO are also tightening crypto tax reporting, signaling a broader regulatory trend.

Odaily星球日报03/16 02:52

U.S. Tax Collection Reaches Wallet Exchanges from 6 Years Ago? Four-Layer Breakdown of the IRS's New Form

Odaily星球日报03/16 02:52

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