The U.S. SEC issued a statement releasing key guidelines, stating that some cryptocurrency trading front ends do not need to register as brokers

The U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets issued a staff statement providing guidance on whether certain user interfaces used to generate trading instructions for crypto asset securities (Covered User Interface) need to register as brokers. The statement noted that under specific conditions, providers of such interfaces may not need to register as broker-dealers under Section 15 of the Securities Exchange Act. These conditions include: not actively soliciting specific trades, not providing investment advice, not controlling or executing trades, generating trading instructions solely based on objective parameters, and fully disclosing the fee structure, potential conflicts of interest, and related risks to users.

The SEC emphasized that such interfaces typically exist in the form of websites, browser plugins, or wallet applications, used to convert user-defined trading parameters into on-chain executable instructions, while also providing market data such as prices, paths, and fees. Additionally, the statement clarified that such exemptions do not apply to activities such as facilitating trades, fund custody, order routing, or providing investment advice. The relevant guidance is a temporary opinion and will automatically expire in 2026 if no further action is taken. The SEC stated that this move aims to provide a clearer regulatory framework for activities related to crypto asset securities and continues to seek market feedback.