SEC softens interface line

The Securities and Exchange Commission said on April 13 that some crypto wallet and app interfaces can operate without broker-dealer registration if they stay narrowly limited and non-custodial. (sec.gov) The statement came from the Division of Trading and Markets, not a full Commission rule, and it applies to websites, browser extensions, and mobile apps that help users prepare transactions in crypto asset securities through self-custodial wallets. The staff said the statement is an “interim step” and will be withdrawn five years after April 13, 2026, unless the Commission acts first. (sec.gov) In plain terms, the staff drew a line between software that formats and transmits a user’s instructions and a broker that intermediates a securities trade. The statement says these interfaces may convert user-selected terms like asset, size, and price into blockchain-readable commands, show market data and estimated network fees, and often charge a fixed percentage per transaction. (sec.gov) The change lands as the agency’s Crypto Task Force has been publishing piecemeal staff views on crypto securities. The Division of Corporation Finance issued a separate statement on April 10, 2025, on disclosure in crypto securities offerings and said Acting Chairman Mark Uyeda had formed the task force to develop a clearer framework. (sec.gov) Commissioner Hester Peirce backed the new approach the same day and said the staff had identified circumstances where it would not object to an interface provider operating without registering as a broker-dealer. She also said she wants a more permanent approach, rather than staff-level guidance, for technology that lets investors use self-custody wallets in onchain securities transactions. (sec.gov) The staff’s statement follows months of lobbying over where that broker line should sit. A February 10, 2026 letter from the Solana Policy Institute and DeFi Education Fund urged the agency to avoid treating neutral, non-custodial wallet software as a broker, while a January 15, 2026 letter from the Securities Industry and Financial Markets Association urged the Commission to use durable rulemaking and keep clear distinctions between true non-custodial tools and services that perform regulated functions. (sec.gov 1) (sec.gov 2) That leaves the core fight unresolved: how far software can go before regulators treat it like a securities intermediary. For now, the Securities and Exchange Commission is offering a temporary path for narrowly designed interfaces, while signaling that the broader broker definition is still under review. (sec.gov 1) (sec.gov 2)