The U.S. Securities and Exchange Commission’s Division of Trading and Markets issued new staff guidance today, April 13, that outlines conditions under which certain crypto-related user interfaces may operate without registering as broker-dealers under federal securities law.
The guidance applies specifically to what the staff calls "covered user interfaces,” which it defines as self-custody software products for interacting with crypto, which could include DeFi protocol front-ends, wallet extensions, and mobile apps.
The staff guidance defines these UIs as “an interface provided by a website, browser extension, or other software application (e.g., mobile application) that may be embedded in a wallet or separately available for download, designed to assist users engaging in user-initiated crypto asset securities transactions on blockchain protocols (or blockchain-based smart contracts) utilizing the user’s self-custodial wallet.”
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