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.
marsbit04/14 07:25
