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The U.S. Securities and Exchange Commission (SEC) just drew a clearer line around crypto apps. In a new staff statement, the agency outlined when certain interfaces used to prepare crypto transactions may avoid broker-dealer registration. The guidance targets wallets and tools that help users interact with blockchain protocols without taking control of funds.

SEC sets boundaries for crypto interfaces

The statement, issued on April 13, focuses on “covered user interfaces,” which means apps or websites that translate user inputs into blockchain transactions. These tools often provide price data and transaction previews, but don’t actually execute trades or custody assets.

Under the SEC’s view, these providers may avoid registering as broker-dealers if they remain strictly neutral. That means no trade recommendations, no soliciting specific transactions, no negotiating terms of any transaction, no order taking, and no control over execution decisions. 

The interface must simply pass user instructions to the blockchain while relying on objective, pre-defined parameters.

Transparency is a key requirement. Providers must clearly disclose fees, conflicts of interest, routing logic, and any affiliations with trading venues. They also need to avoid labeling routes as “best” or steering users toward specific outcomes.

Relief comes with strict conditions

The guidance offers a potential path forward for crypto builders, but it is far from a free pass. The SEC makes clear that once an interface crosses into advisory, execution, or custody roles, broker-dealer rules likely apply.

Even within the safe zone, providers must implement controls to evaluate trading venues, determine transaction parameters, protect user data, and ensure fair routing practices. Compensation must remain fixed and neutral, without incentives tied to specific assets or venues.

Importantly, this differs from a formal rule. It acts as an interim framework as the SEC continues working on broader crypto regulation, and it is set to expire in five years unless replaced.

For developers and platforms, it means you can build user-facing crypto tools without registering as a broker, but only if you stay hands-off, transparent, neutral, and firmly on the infrastructure side of the market.