The SEC’s Division of Trading and Markets said Monday that certain non-custodial crypto wallet interfaces don’t need to register as broker-dealers, in interim guidance that will remain effective for five years.

The SEC’s Division of Trading and Markets issued a staff statement Monday clarifying that software interfaces enabling users to conduct crypto securities transactions through self-hosted wallets generally do not trigger broker- dealer registration requirements — offering meaningful interim relief to DeFi developers and decentralized exchange operators.

The statement defines a “covered user interface” as a website, browser extension, mobile application, or software embedded in a wallet, designed to help users initiate crypto asset securities transactions on blockchain protocols or smart contracts using their own self-custodial wallets. The SEC said it will not object to these providers operating without broker-dealer registration if they meet a specific set of conditions.

Those conditions are: the interface must not take custody of user funds; it must not provide investment recommendations or execution advice; it must not route or execute orders; it must offer multiple execution options ranked by neutral criteria such as price; and it must charge only flat or fixed fees rather than transaction-based compensation. Interfaces that offer financing, exercise discretion over transactions, or solicit users toward specific trades fall outside the exemption.

This story is an excerpt from the Unchained Daily newsletter.

The statement represents a departure from how the SEC previously treated some crypto front-end services. Under prior enforcement-driven practice, interfaces that connected users to crypto markets were sometimes treated as falling within broker rules because of their functional role in facilitating transactions. The new guidance draws a cleaner line between neutral infrastructure providers and active financial intermediaries.

The statement is interim, not a formal rule, and carries no force of law on its own. It will be considered withdrawn five years from April 13, 2026, unless the Commission acts to replace it with permanent rulemaking before then. The agency said it welcomes industry feedback as formal rules are developed. The release follows a string of similar staff statements under Chair Paul Atkins covering meme coins, stablecoins, and staking — each offering industry clarity without the durability of formal rulemaking. The SEC acknowledged that “covered user interfaces” will still be subject to other securities law obligations beyond broker-dealer registration.